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Questions and Answers
What is the primary objective of public finance compared to private organizations?
Which of the following is NOT a field of finance as recognized in the context provided?
What must insurers do before filing variations in deductibles under insurance policies?
Which of the following statements about revised insurance products is correct?
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In the context provided, what is an example of an add-on cover under motor OD insurance?
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Study Notes
Overview of Financial Management
- Financial management comprises five specialized fields, each focusing on the handling of money and related claims.
- Distinct fields arise from different objectives and challenges faced by various organizations.
Public Finance
- Encompasses financial management by central, state, and local governments.
- Governments manage substantial funds sourced from taxes and various revenues, adhering to specific policies.
- Key objectives include meeting social and economic aims rather than generating profits, contrasting with private enterprises.
- Specialized public finance addresses unique governmental financial requirements and legislative restrictions.
Insurance Variations
- Insurers can propose variations in deductibles from established tariffs under specific conditions.
- Written disclosures and acceptance by the insured are mandatory before finalizing insurance policies.
- Insurers may introduce add-on covers that exceed traditional tariff options, which involve additional premiums.
- Examples include 'Loss of Use' and 'Waiver of Depreciation' under motor own damage (OD) insurance.
Revised Insurance Products
- New product offerings, upon approval via file-and-use guidelines, are available for existing policyholders during renewal.
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Description
Explore the key areas of financial management through this quiz, focusing on the five specialized fields. Understand how different organizations manage money and tackle specific financial challenges based on their objectives. Test your knowledge and gain insights into public finance, corporate finance, and more.
