Insurance and Risk Management 7

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Objective Questions and Answers of MBA: Insurance and Risk Management 7

Subject: Objective Questions and Answers of MBA: Insurance and Risk Management 7

Part 7: Objective questions and answers of Insurance and Risk Management


Q1. The identification analysis and economic control of those risk which can threaten the assets or earning capacity of an enterprise is known as ______________.

a) Business management

b) Risk management

c) Financial management

d) Strategic management


Q2. If rmis shows inflexibility of system then provide ______________.

a) Solid vendor account team

b) Clear and comprehensive specifications

c) Internal access to system expert

d) Standard software configuration


Q3. Which of the following is the last step in risk management process ______________?

a) Insurance

b) Review

c) Risk evaluation

d) Loss prevention


Q4. Except life assurance the maximum term of other insurance is ______________.

a) 12 months

b) 24 months

c) 6 months

d) 36 months


Q5. ______________ Policy issued on the basis of the number of persons assured.

a) Annuity policy

b) Multiple life policy

c) Single life policy

d) Level of premium policy


Q6. Which of the following contract is not legally enforceable?

a) Contract of insurance

b) Wagering contract

c) Contract of sale of goods

d) Contract of business


Q7. Which of the statements are true?

a) Loss prevention and loss reduction mean different things

b) Risk may be transferred by contract

c) Both the statements

d) Neither is correct


Q8. Contractual risk transfers come under ______________

a) Cost of loss financing

b) Cost of internal risk reduction

c) Cost of control of loss

d) Cost of residual uncertainty


Q9. The insurance plays a role in the economic development of the country in following ways:

a) Releases capital for new investment

b) The job potential increases

c) Money collected is invested in infrastructure

d) All of the above


Q10. Risk and premium are fixed on the basis of ______________.

a) Strategic methods

b) Survey methods

c) Scientific methods

d) Probability methods


Q11. The premium implies ______________

a) Consideration by service

b) Consideration by cash

c) Consideration by kind

d) Speculative cash


Q12. The risk evaluation breaks into two parts They are ______________

a) The cause of loss and its affects

b) The probability of loss occurring and its severity

c) The loss due to any reasons

d) The risk and return


Q13. Having money available when it is needed is defined as the art of ______________.

a) Financial management

b) Risk management

c) Contingency fund

d) Surplus


Q14. In alike the risk of creditors and shareholders by high capital gearing ratio companies is ______.

a) Increased

b) Decreased

c) Government

d) Management and employees


Q15. That which helps to determine the accuracy and relevance of risk at each stage to which an organization is exposed is known as ______________.

a) Principle of identification

b) Principle of risk analysis

c) Principle of assessment risk

d) Principle of corrective decision


Q16. If impurity of data is the problem that rmis is showing then provide ______________.

a) Clear and comprehensive specifications

b) Solid vendor account team

c) Reference checks, including on-site

d) Assessment in proper manner


Q17. Which of the statements is correct? 

A. The simplest way to deal with a risk to avoid it.

B. This technique is always possible and practical.

a) Statement a

b) Statement b

c) Both the statements

d) Neither of the statements


Q18. The person who agrees to compensate the loss arising from the risk is called the _______.

a) Insurer

b) Assurer

c) Underwriter

d) All the above


Q19. ______________ Policy is which covers the risk during all situations.

a) Floating

b) Wagering

c) Valued

d) Mixed


Q20. Which of the following steps in the risk management process helps in determining sum insured under policies?

a) Risk identification

b) Risk retention

c) Risk evaluation

d) Risk transfer


Part 7: Objective questions and answers of Insurance and Risk Management


Q1. Answer b


Q2. Answer c


Q3. Answer a


Q4. Answer a


Q5. Answer b


Q6. Answer b


Q7. Answer c


Q8. Answer b


Q9. Answer d


Q10. Answer c


Q11. Answer b


Q12. Answer b


Q13. Answer a


Q14. Answer a


Q15. Answer b


Q16. Answer c


Q17. Answer d


Q18. Answer d


Q19. Answer d


Q20. Answer c

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