Author name: Administrator

2362. Higher and accurate budgeted profit forecast of managers lead to

high incentive bonus
low incentive bonus
influence bonus
revenue bonus
✅ The correct answer is A.
Higher and accurate budgeted profit forecast of managers lead to high incentive bonus. At the start of each fiscal period, the business owner prepares a budget based on projected revenue and the expenditure needed to realize that revenue.

2363. Formula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate

historical betas
adjusted betas
standard betas
varied betas
✅ The correct answer is B.
Formula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate adjusted betas. The Adjusted Beta is an estimate of a security’s future Beta. Adjusted Beta is initially derived from historical data, but modified by the assumption that a security’s true Beta will move towards the market average, of 1, over time.

2364. E-business can be defined as_______.

the uninhibited flow of information and goods on the Web
the use of the Internet and the Web to transact business
digitally enabled transactions and processes within an organization
commercial transactions involving electronic goods
✅ The correct answer is C.
E-business can be defined as digitally enabled transactions and processes within an organization. E-business or Online business means business transactions that take place online with the help of the internet. The term e-business came into existence in the year 1996. E-business is an abbreviation for electronic business.

2365. The upper portion of the kinked demand curve is relatively

More inelastic
More elastic
Less elastic
Inelastic
✅ The correct answer is B.
The upper portion of the kinked demand curve is relatively more elastic. The kinked-demand curve is a demand curve comprised of two segments, one that is relatively more elastic, which results if a firm increases its price, and the other that is relatively less elastic, which results if a firm decreases its price. These two segments are joined at a corner or “kink.”

2368. Type of options that permit bond holder to buy stocks at stated price are classified as

provision
guarantee
warrants
convertibles
✅ The correct answer is C.
Type of options that permit bond holder to buy stocks at stated price are classified as warrants. Warrants are a derivative that give the right, but not the obligation, to buy or sell a security most commonly an equity at a certain price before expiration. The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price.

2351. Which of the two decisions are involved in a savings proposition?

Retention of risk and reduced consumption
Gifting and accumulation
Spending and accumulation
Postponement of consumption and parting with liquidity
✅ The correct answer is D.
Postponement of consumption and parting with liquidity are involved in a savings proposition.
Postponement of consumption: an allocation of resources between present and future consumption.
Parting with liquidity (or ready purchasing power) in exchange for less liquid assets. For instance, purchase of a life insurance policy implies exchanging money for a contract which is less liquid.

2341. Market value of option which is out-of-money is

greater than zero
equal to zero
lesser than zero
equal to one
✅ The correct answer is A.
Market value of option which is out-of-money is greater than zero. The market price of the option is the price you pay when you buy the option and the price you get when you sell the option. The market price of the option consists of two parts, intrinsic value and time value.

2342. In Needs-analysis the following act is done

Location of areas where people need life insurance protection
Identifying people who may work as agents
Estimating assets of prospects
Estimating the net worth of prospects
✅ The correct answer is A.
In Needs-analysis location of areas where people need life insurance protection. A good needs analysis also considers how much the death benefit from the life insurance policy is likely to earn if it’s invested.

2343. Which type of classification is based on alphabetical order?

Alphabetical classification
Numerical classification
Subject wise classification
Geographical classification
✅ The correct answer is A.
Alphabetical classification classification is based on alphabetical order. Alphabetical filing is a fundamental way to organize documents in both your private and personal life. Filing documents in alphabetical order will allow you and others to find and replace each file quickly.
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