art mcqs

What is a separate and fully equipped facility where the company can move immediately after the disaster and resume business?

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A) Disaster recovery plan
B) Hot site
C) Cold site
D) Disaster recovery cost curve
✅ ANSWER: B
Hot site is a separate and fully equipped facility where the company can move immediately after the disaster and resume business. A hot site is a commercial disaster recovery service that allows a business to continue computer and network operations in the event of a computer or equipment disaster.

What does moral hazard indicate?

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A) The possibility that client would undertake dangerous expeditions after taking a policy
B) The possibility of ending own life or the life of another
C) Both the above instances
D) None of the three
✅ ANSWER: C
Moral hazard indicates that the possibility that client would undertake dangerous expeditions after taking a policy and the possibility of ending own life or the life of another.

Which of these is not a Material control technique:

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A) ABC Analysis
B) Fixation of raw material levels
C) Maintaining stores ledger
D) Control over slow moving and non moving items
✅ ANSWER: C
Maintaining stores ledger is not a Material control technique. A stores ledger is a manual or computer record of the raw materials and production supplies stored in a production facility. It is maintained by the person responsible for these assets, such as the warehouse manager.

Which one is not a server level threat?

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A) Malicious code
B) CGI threats
C) Database threats
D) Buffer overflows
✅ ANSWER: A
Malicious code is not a server level threat. Malicious code is the term used to describe any code in any part of a software system or script that is intended to cause undesired effects, security breaches or damage to a system. Malicious code is an application security threat that cannot be efficiently controlled by conventional antivirus software alone.

Noting charges are paid at the time of

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A) Renewal of the bill
B) Retirement of the bill
C) Dishonor of the bill
D) None of the above
✅ ANSWER: C
Noting charges are paid at the time of Dishonor of the bill. When a Bill of Exchange is dishonoured, in order to prove the fact, the drawer (or holder) may get the bill of exchange noted and protested through a public official known as “Notary Public” Noting is the recording of the fact of dishonour by a Notary public which becomes an evidence of dishonour.

In pure play method, a company can calculate its own cost of capital with help of averaging an

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A) other company capital policy
B) other company beta
C) other company cost
D) other division cost
✅ ANSWER: B
In pure play method, a company can calculate its own cost of capital with help of averaging an other company beta. Pure play method is an approach used to estimate beta coefficient of a company whose stock is not publicly traded.

Bonds issued by corporations and exposed to default risk are classified as

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A) corporation bonds
B) default bonds
C) risk bonds
D) zero risk bonds
✅ ANSWER: A
Bonds issued by corporations and exposed to default risk are classified as corporation bonds. A corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company’s physical assets may be used as collateral for bonds.

Method which allocates cost of support department to only operating departments is called

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A) indirect method
B) direct method
C) step down method
D) reciprocal method
✅ ANSWER: B
Method which allocates cost of support department to only operating departments is called direct method. The direct allocation method is a technique for charging the cost of service departments to other parts of a business.