art mcqs

The major difference between perfect competition and monopolistic competition is

by
A) Number of firms
B) Differentiated product
C) Rate of profit
D) Free exit and entry
✅ ANSWER: B
The major difference between perfect competition and monopolistic competition is differentiated product. Product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors’ products as well as a firm’s own products.

Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as

by
A) economic accounting
B) back-flush accounting
C) lean accounting
D) lead accounting
✅ ANSWER: C
Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as lean accounting. Lean accounting is a financial management approach that supports the streamlined processes of lean manufacturing.

Which one of the following statements is correct?

by
A) Annuity would stop strictly with the death of the annuitant
B) Annuity could be paid to the surviving spouse in case of joint life annuity
C) Both A & B
D) None of the above
✅ ANSWER: B
Both the statements are correct.
Annuity would stop strictly with the death of the annuitant and Annuity could be paid to the surviving spouse in case of joint life annuity.

Limited partners in partnership business have

by
A) no control
B) whole control
C) corporate authority
D) general authority
✅ ANSWER: A
Limited partners in partnership business have no control. Limited partnerships consist of partners who maintain an active role in the management of the business, and those who just invest money and have a very limited role in management. These limited partners are essentially passive investors whose liability is limited to their initial investment. Limited partnerships have more formal requirements than the other two types of partnerships.

_________ life insurance pays off a policyholder’s mortgage in the event of the person’s death.

by
A) Term
B) Mortgage
C) Whole
D) Endowment
✅ ANSWER: B
Mortgage life insurance pays off a policyholder’s mortgage in the event of the person’s death. This protects a mortgage holder’s heirs in the event of his/her untimely demise. If the beneficiary dies after he/she has finished paying for the house, no mortgage life insurance is paid out.