Insurance and Risk Management 1

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Objective Questions and Answers of MBA: Insurance and Risk Management 1

Subject: Objective Questions and Answers of MBA: Insurance and Risk Management 1

Part 1: Objective questions and answers of Insurance and Risk Management


Q1. Losses arising due to a risk exposure retained or assured are known as ______________

a) Risk reduction

b) Risk financing

c) Risk retention

d) Risk sharing


Q2. The measures aimed at avoiding, eliminating or reducing the chances of loss production is covered by ______________

a) Risk control

b) Risk retention

c) Risk avoidance

d) Risk financing


Q3. The risk manager may be able to identify the new ventures involved in ________.

a) Pure risk.

b) Group risk.

c) Speculative risk.

d) Particular risk.


Q4. The person whose risk is insured is called ______________.

a) Insured

b) Merchandiser

c) Marketer

d) Agents


Q5. Uncertain events are broadly classified as ______________.

a) Predictable and unpredictable.

b) Possible and impossible

c) Natural and artificial.

d) Rare and continuous


Q6. The success of whole process of risk management depends on its ______________.

a) Identification

b) Risk analysis

c) Assessment of risk

d) Evaluation of risk


Q7. That which covers the cost of self-insurance, loading in insurance premiums and enforcing hedging arrangements is ______________.

a) Cost of loss financing

b) Cost of control of loss

c) Cost of residual uncertainty

d) Cost of internal risk reduction


Q8. The risk management can be done by ______________.

a) Insurance

b) Hedging

c) Derivatives

d) All of the above


Q9. ______________ is the extra payment done for administrative and capital cost.

a) Premium

b) Premium loading

c) Interest

d) Contingency


Q10. The principle of indemnity is applicable to ______________ only.

a) Life insurance

b) Personal accident insurance

c) Proximate cause

d) Property insurance


Q11. Risk management is a subject which falls under ______________.

a) Production

b) Hr

c) Marketing

d) Finance


Q12. Insurance contract is sort of contract which is approved by ______________.

a) The Indian contract act

b) Indian factory act

c) Indian companies act

d) The Indian finance act


Q13. The first step in risk management process is ______________.

a) Risk avoidance

b) Risk identification

c) Insurance

d) Risk evaluation


Q14. Risk retention means ______________

a) Saving money to pay for the losses

b) Accepting and agreeing to finance the loss oneself

c) Not taking up any activity which is risky

d) Insuring the risk


Q15. The company doing the insurance business is called ______________.

a) Mutual funds

b) Non-banking firm

c) An insurance company

d) Banking company


Q16. Pure risk was grouped ______________.

a) Property risk

b) Personal risk

c) Liability risk

d) All the above


Q17. ______________ refers to distribution of insurance products through

a) Bank

b) Company

c) Co-operatives

d) Sole trader


Q18. The foundation for risk management is provided by ______________

a) Risk control

b) Risk analysis

c) Risk identification

d) Risk retention


Q19. ______________ are the risk management methods

a) Insurance

b) Hedging

c) Derivatives

d) All the above


Q20. A firm may seek to minimize marketing risks by undertaking ______________.

a) Credit facilities

b) Training salesmen

c) Market research

d) Branch expansion


Part 1: Objective questions and answers of Insurance and Risk Management


Q1. Answer c


Q2. Answer a


Q3. Answer a


Q4. Answer a


Q5. Answer a


Q6. Answer a


Q7. Answer a


Q8. Answer d


Q9. Answer b


Q10. Answer d


Q11. Answer d


Q12. Answer a


Q13. Answer b


Q14. Answer b


Q15. Answer c


Q16. Answer d


Q17. Answer a


Q18. Answer c


Q19. Answer d


Q20. Answer c

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