Tag: organization of commerce and management

Questions Related to organization of commerce and management

State the following statement is True or False:
The principle of insurance under which the compensation paid to the insured which is equal to the actual loss is indemnity.

organization of commerce and management business risks and insurance meaning, importance and principles of insurance features and principles of insurance meaning and definition of insurance

  1. True

  2. False

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Correct Option: A
Explanation:
According to the concept of indemnity, the insurer undertakes to put the insured, in the event of loss, in the same position that he occupied immediately before the happening of the uncertain event. In other words the insurer undertakes to compensate the insured for the loss caused to him/her due to damage or destruction of property insured. 
The compensation payable and the loss suffered are to be measured in terms of money. The principle of indemnity is not applicable to life insurance.

State the following statement is True or False:
Through insurance the risk is divided among many people.

organization of commerce and management business risks and insurance meaning, importance and principles of insurance features and principles of insurance meaning and definition of insurance

  1. True

  2. False

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Correct Option: A
Explanation:

Insurance is a form of risk management. It is a substitution of the premium for a risk of large possible loss. Such loss is spread over a large number of policyholders exposed to the same risk.

State the following statement is True or False:
A document containing terms and conditions of insurance contract is called policy.

organization of commerce and management business risks and insurance meaning, importance and principles of insurance features and principles of insurance meaning and definition of insurance

  1. True

  2. False

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Correct Option: A
Explanation:

Insurance policy is a formal and legal document issued by the insurance company to the insured. It describes the terms and conditions relating to the particular policy. 

It includes details about the risks covered, duration of coverage, amount of premium, mode of payment of premium, etc.

One who calculates insurance and annuity premium is known as _____.

organization of commerce and management business risks and insurance meaning, importance and principles of insurance features and principles of insurance meaning and definition of insurance

  1. Investor

  2. Insurer

  3. Actuary

  4. Atheist

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Correct Option: C
Explanation:

One who calculate insurance and annuity premium is known as actuary. Actuary basically deals with management and measurement of risks and uncertainty. An actuary is often described as an business professional.

An agent is_________between his principal and the third party.

organization of commerce and management business risks and insurance meaning, importance and principles of insurance features and principles of insurance meaning and definition of insurance

  1. Connecting link

  2. Sub agent

  3. Partner

  4. None of the above

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Correct Option: D
Explanation:

An agent is not a connecting link, sub agent or partner between his principal and the third party. An agent can be referred as a person who acts on behalf of some other person. Agent always take an active role in order to create a specific effect on an activity.

The abbreviation 'AAR' stands for _______________.

organization of commerce and management business risks and insurance meaning, importance and principles of insurance features and principles of insurance meaning and definition of insurance

  1. Annual Average Risk

  2. Annual All Return

  3. Against All Risks

  4. Against Average Risk

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Correct Option: C
Explanation:

The abbreviation "AAR' stands for Against All Risk. AAR is related with insurance companies. AAR insurance is primarily referred to a health insurance company of Kenya which started its operations in the year of 1984.

Which one of the following generalisations can be drawn from the principle of subrogation?

organization of commerce and management business risks and insurance meaning, importance and principles of insurance features and principles of insurance meaning and definition of insurance

  1. It is the principle by which the insurer, after having paid the loss to the insured, steps into the shoes of the insured person and acquires all rights and remedies as the insured would have enjoyed regarding the said loss

  2. A person who keeps a stock of inflammable material in his premises

  3. The insured can get only the compensation against the actual loss and he can't make profit out of insurance

  4. In marine insurance the immediate cause and not the remote cause shall be considered for bearing the loss

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Correct Option: A
Explanation:

In principle of subrogation the insurer, after having paid the loss to the insured, steps into the shoes of the insured and acquires all rights and remedies as the insured would have enjoyed regarding the said loss. 


It basically means that insurer has a legal right to claim any future gains from the property after the said loss for any recovery/settlement. 

AMUL is a __________.

organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

  1. company

  2. co-operative society

  3. co-operation

  4. none of the above

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Correct Option: B

Member in HUF other than KARTA are called as _____________.

organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

  1. Co-parceners

  2. Co-partner

  3. Co-manager

  4. Co-karta

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Correct Option: A

Which of the following is example of producers' co-operative society?

organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

  1. Haryana handloom

  2. Gujarat co-operative milk marketing federation

  3. Apna Bazar

  4. Urban Co-operative Banks

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Correct Option: A