Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 13 of 18

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Q121.
What distinguishes Group Insurance from individual insurance?

a.

Group insurance covers individuals with single policies.

b.

Group insurance covers only employees of an organization.

c.

Group insurance provides coverage to a group of people.

d.

Individual insurance is administered on a group basis.

Discuss
Answer: (c).Group insurance provides coverage to a group of people. Explanation:Group insurance is an insurance plan that covers a group of people, such as members of societies, employees of an organization, or professionals in a common group.
Q122.
What is a characteristic of Group (Term) Insurance Scheme?

a.

It provides only maturity value at the end of the term.

b.

Medical evidence is always required for coverage.

c.

It covers only a specific category of individuals.

d.

Administration is on a group basis with simple insurability conditions.

Discuss
Answer: (d).Administration is on a group basis with simple insurability conditions. Explanation:Group (Term) Insurance Scheme is administered on a group basis with low cost and allows life insurance cover to all members of a group with simple insurability conditions.
Q123.
What does Group (Term) Insurance Scheme cover?

a.

Only critical illness.

b.

Only disability.

c.

Only death.

d.

Death and maturity.

Discuss
Answer: (c).Only death. Explanation:Group (Term) Insurance Scheme covers only on death, and there is no maturity value at the end of the term.
Q124.
How is the premium charged in a Group (Term) Insurance Scheme?

a.

It remains constant throughout the term.

b.

It is not charged annually.

c.

It depends on the age distribution of the age group.

d.

It is charged only at the time of joining the group.

Discuss
Answer: (c).It depends on the age distribution of the age group. Explanation:Group (Term) Insurance Scheme is usually offered under One Year Renewable Group term assurance plan, and every year on the Annual Renewal date, the insurer charges the premium depending upon the changes in size and age distribution of the age group.
Q125.
What are examples of add-ons or riders in Group Term Insurance schemes?

a.

Graded covers for different categories of members.

b.

Cover for outstanding housing loans or vehicle advances.

c.

Annual renewal options.

d.

Uniform cover for all members of the group.

Discuss
Answer: (b).Cover for outstanding housing loans or vehicle advances. Explanation:Group Term Insurance schemes may have add-ons or riders like Double Accident Benefit, Critical Illness Benefit, Disability benefit, etc. One of the examples given is cover for outstanding housing loans or vehicle advances.
Q126.
What is the statutory basis for Gratuity payments in India?

a.

Companies Act, 1956

b.

Employees' Provident Fund and Miscellaneous Provisions Act, 1952

c.

Payments of Gratuity Act, 1972

d.

Income Tax Act, 1961

Discuss
Answer: (c).Payments of Gratuity Act, 1972 Explanation:Gratuity is a statutory benefit governed by the Payments of Gratuity Act, 1972.
Q127.
When is an employee eligible for gratuity under the Payments of Gratuity Act, 1972?

a.

After three years of continuous service

b.

After four years of continuous service

c.

After five years of continuous service

d.

After six years of continuous service

Discuss
Answer: (c).After five years of continuous service Explanation:An employee is eligible for 15 days of pay for each completed year of service on any of the specified situations like retirement, permanent total disablement during service, death during service, or resignation from service, after five years of continuous service.
Q128.
How is Gratuity Liability typically managed by employers?

a.

By paying out gratuity proceeds from the current revenue income.

b.

By setting up a Gratuity Fund and meeting the liability from the fund.

c.

By not offering gratuity benefits to employees.

d.

By using the employer's personal funds to pay gratuity.

Discuss
Answer: (b).By setting up a Gratuity Fund and meeting the liability from the fund. Explanation:A prudent and tax-saving way of meeting Gratuity Liability is to ascertain such liability, set up by a Gratuity Fund, and meet liability from the fund as and when required.
Q129.
What type of Gratuity Insurance Plan do life insurance companies offer to employers?

a.

Term Insurance Plan

b.

Unit-linked Insurance Plan

c.

Endowment Policy

d.

Deposit Administration type of Gratuity liability

Discuss
Answer: (d).Deposit Administration type of Gratuity liability Explanation:Life insurance companies offer Gratuity Insurance Plan to employers as a Deposit Administration type of Gratuity liability.
Q130.
How is the rate of interest in a Gratuity Insurance Plan typically structured?

a.

It has a fixed rate of interest.

b.

It has a variable rate of interest.

c.

It has a guaranteed part and a non-guaranteed part.

d.

It does not earn any interest.

Discuss
Answer: (c).It has a guaranteed part and a non-guaranteed part. Explanation:The rate of interest in a Gratuity Insurance Plan will have two components: a guaranteed part and a non-guaranteed part. The non-guaranteed part would apply only to withdrawals taking place in that year and is not guaranteed for the subsequent years. The guaranteed part once allotted is guaranteed.
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