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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