NTA UGC NET/JRF Exam, Dec. 2019 Commerce (Evening-Shift)

Total Questions: 100

91. The insurance business in India was started first by which one of the following?

Life Insurance in its modern form came to India from England in the year 1818. The Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian soil.

All the insurance companies established during that period were brought up with the purpose of looking after the needs of the European community and Indian natives were not being insured by these companies.

However, later with the efforts of eminent people like Babu Muttylal Seal, foreign insurance companies started insuring Indian lives too. But Indian lives were being treated as sub standard lives and heavy extra premium were being charged upon them.

The Bombay Mutual Life Assurance company in the year 1870 and covered Indian lives at normal rates. Starting as an Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society.

In 1907, the Hindustan Co-operative Insurance Company took birth in one of the rooms of 'The Jorsanko', house of the great poet Rabindranath Tagore in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period.

Prior to 1912, India had no legislation to regulate the insurance business. In the year 1912, Life Insurance Companies Act and Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary.

But the Act discriminated between foreign and Indian Companies on many accounts, putting Indian Companies at a disadvantage.

Correct Answer: (c) Europeans
Solution:

Let's have a look at the 2nd sentence from the paragraph -"The oriental life insurance company started by Europeans in Calcutta was first life Insurance Company on Indian Soil".
• Upon perusal of the above statement, it can be concluded Europeans were the first to start the insurance business in India.

92. Which among the following was later renamed as Bombay Life?

Correct Answer: (d) Swadeshi Life
Solution:

Let's have a look at the 9th sentence from the paragraph :-
•The Indian mercantile, General Assurance and Swadeshi Life (Later Bombay Life) were some of the companies established during the same period."
• upon perusal of the above statement, it can be concluded Swadeshi Life was later renamed Bombay Life.

93. Identify the correct statement from the following

Correct Answer: (a) Initially, insurance companies used to discriminate Indian and European clients
Solution:

Let's have a look at the 3rd sentence from the paragraph:
"All the insurance companies established during that period were brought up with the purpose of looking after the needs of the European community and Indian natives were not being insured by these companies."
• Upon perusal of the above statement, it can be concluded that initially, insurance companies used to discriminate between Indian and european clients.

94. The paragraph is about which of the following?

Correct Answer: (a) Genesis of insurance in India
Solution:

Let's have a look at the first two sentence from the paragraph : -
-"Life insurance in its modern form came to India from England in the year 1818. The Oriented Life Insurance company started by Europeans in Calcutta was the First Life Insurance Company on Indian Soil".
• Upon perusal of the above statement, it can be concluded that the paragraph is about the Genesis of insurance in India.

95. Which one among the following grew along with insurance business in India?

Correct Answer: (b) Provident Fund
Solution:

Let's have a look at the 3rd last sentence from paragraph:
- "In the year 1912, Life Insurance Company Act and provident Fund Act were passed." Upon perusal of the above statement, it can be concluded that provident fund grew along with insurance business in India.

96. Which of the following is the correct product definition of 'Blue Star'?

Companies often define themselves in terms of products: They are in the "auto business" or the "clothing business". Market definitions of a business, however, describe the business as a customer - satisfying process.

Products are transient, basic needs and customer groups endure forever. Transportation is a need: the horse and carriage, automobile, railroad, airline, ship and truck are products that meet the need.

Viewing business in terms of customers can suggest additional growth opportunities. There exists a difference between a target market definition and a strategic market definition. Tо define its mission, a company should address Peter Drucker's classic question: What is our business?

Correct Answer: (d) We make air conditioners
Solution:

Blue Star Limited is an Indian multinational Company specializing in designing, developing, manufacturing and marketing a wide variety of products in the Air conditioning and commercial refrigeration industry and his headquarter in Mumbai, India.

97. Which of the following is the correct combination of Product Definition and Market Definition of Xerox Company?

Correct Answer: (d) Product Definition - We make copying equipment Market Definition - We help improve office productivity
Solution:

A Xerox company may be defined as the one that manufactures Xerox machines.

As per the passage, the product definition needs to be product-specific i.e. we make copying equipment.

As per the passage, the market definition needs to be customer-oriented i.e. we help improve office productivity.

98. Pepsi could define its 'target market' as:

Correct Answer: (a) Everyone who drinks carbonated soft drinks and are competitors
Solution:

Upon perusal of the above statement, Pepsi can be concluded everyone who drinks carbonated soft drinks and competitors are Pepsis's target market.

99. Which of the following is the correct market definition of 'BPCL'?

Correct Answer: (c) We supply energy
Solution:

Bharat Petroleum Corporation Limited (BPCL) is an Indian public sector oil and gas company headquartered in Mumbai Maharashtra.

As per the passage, the market definition needs to be customer-oriented.

Of the given option, only the 3rd option i.e. we supply energy, has an innate appeal and the rest of the options are to satrightforward.

100. Which of the following is NOT a major characteristic of a good mission statement?

Correct Answer: (a) They have very limited words
Solution:

Let's have a look at the last sentence from the paragraph:
"To define its mission, a company should address Peter Druker's classic question: what is our business?"
Upon persual of the above statement, it can be concluded that limited words is not a major characteristic of a good mission stated.