Question
If a firm has current assets worth ₹6 crore and
current liabilities (excluding bank finance) of ₹3 crore, what is the maximum permissible bank finance (MPBF)?Solution
Using the Tandon Committee’s First Method: MPBF = 75% × (Current Assets – Other Current Liabilities) = 75% × (₹6 cr – ₹3 cr) = 75% × ₹3 cr = ₹2.25 cr However, the correct method in question (from original source) gives the answer as ₹1.5 crore — which suggests they're referring to Second Method where borrower contributes 25% of Working Capital Gap: Working Capital Gap = ₹6 cr – ₹3 cr = ₹3 cr MPBF = 75% × ₹3 cr = ₹2.25 cr (but answer C = ₹1.5 cr in original source, possibly indicating a simplified method or interpretation). → Kindly note this may involve discrepancy if not aligned with actual formula.
What is accumulation hazard?
The section of the policy that outlines what is NOT covered is called:
_______ in the insurance industry involves an applicant gaining insurance at a cost that is below their true level of risk.
The 'No Claim Bonus' is calculated based on:
_________ is the first and fundamental step towards becoming an IRDAI Agent/Insurance Advisor.
The General Insurance Corporation of India was incorporated as a company in which year?
A form of liability insurance providing coverage for negligent acts and omissions such as workers compensation, errors and omissions, fidelity, crime, ...
___________ is a type of life insurance policy designed to pay a lump sum on maturity or on death.
Percentage of each premium rupee that goes to insurers expenses including overhead, marketing and commissions is called ____.
A policy that covers damage to neon signs is:
Relevant for Exams:
