Insurance is based on the principle of _______.
A. Co-operation
B. Democracy
C. Equality
D. Welfare
Answer: Option A
Solution(By Examveda Team)
Insurance is based on the principle of economic co-operation. It is a pooling of risks and spreading over a number of persons. It is the basic principle of insurance. The premium is collected from a number of persons, and an insurance fund is created. From this fund, the compensation is given to the contributors who suffer contingent loss. In modern days, it is now a specialized branch of commerce. Today, insurance covers a wide range of risks. It now closely related to the day-to-day life of individuals as well as of the nation. It also plays a prominent role in the national economy.Related Questions on Business and Commerce
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D. Selling and buying of goods
Which of the following is not an economic activity?
A. A doctor practicing
B. A lawyer practicing law
C. A professional cricketer playing cricket
D. A student playing cricket
Which of the following is an extractive industry?
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D. Flour mills
Which of the following is not a manufacturing industry?
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B. Flour Mills
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