Thanks: XYZ
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True/False
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Question
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Semi-variable cost is the cost
which varies in direct proportion to the sales revenue
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Answer
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False
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Multiple Choice Single
Answer
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Question
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The rate at which an organisation
must pay to the suppliers of capital for the use of their funds is termed as
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Answer
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cost of capital
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True/False
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Question
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A high degree of operating
leverage means that the component of fixed cost is too high in the overall
cost structure
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Answer
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TRUE
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Select The Blank
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Question
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________ of the company should
authorise the company to buy back its own shares
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Answer
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Articles of Association
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Multiple Choice Single
Answer
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Question
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Tax paid is
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Answer
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Application of funds
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Multiple Choice
Multiple Answer
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Question
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The factor may provide the
following services to the client
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Answer
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It may undertake the credit analysis of the customers
of the client , It will undertake the various book-keeping and accounting
activities in relation to the receivables management , It undertakes the
responsibility of following up with the customers for the purpose of making
the collection from the customer
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Multiple Choice
Multiple Answer
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Question
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Packing credit facility can take
the following form
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Answer
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Pre-shipment Packing credit , Post-shipment
Packing credit
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Select The Blank
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Question
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One of the tools available to the
company to ensure the maintenance of ________ cash balance is to prepare cash
budget
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Answer
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Optimum
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Select The Blank
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Question
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The comparison of the ratios of
one organisation with that of the other organisation is termed as ________
comparison
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Answer
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Inter-firm
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Multiple Choice Single
Answer
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Question
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Financing consists of the raising,
providing, managing of all the money, capital or funds of any kind to be used
in connection with the business' is defined by
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Answer
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Bonneville and Dewey
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Multiple Choice
Multiple Answer
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Question
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The importance of various items of
inventory may be decided on the following factors
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Answer
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Amount of investment in inventory
, Value of material consumption , Critical nature of inventory items
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Multiple Choice Single
Answer
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Question
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A decrease in current assets
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Answer
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decreases working capital
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Multiple Choice Single
Answer
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Question
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The proxy is
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Answer
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a person appointed by the equity shareholder
to attend the annual general meeting in his absence and can vote in the
meeting
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Multiple Choice Single
Answer
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Question
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The traditional approach to
financial management refers only to the procurement of funds by
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Answer
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Corporate entity
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Select The Blank
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Question
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The basic objective of ________
management is to reduce the operating cash requirement to the minimum
possible extent without affecting the routine transactions.
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Answer
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Cash
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True/False
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Question
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The cost of the factor is slightly
higher than the interest which the client would have paid had he borrowed the
funds from the Bank
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Answer
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True
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Select The Blank
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Question
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________ in assets involves inflow
of funds
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Answer
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Decrease
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Select The Blank
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Question
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Liquidity ratios indicate the
________ position of the organisation
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Answer
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Short term
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Multiple Choice Single
Answer
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Question
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Technical terminology used to
invest in the current assets being
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Answer
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Working Capital Management
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True/False
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Question
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Reorder level is calculated as
Maximum Lead Time * Minimum Usage
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Answer
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False
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Multiple Choice Single
Answer
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Question
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The company can raise the funds in
the form of Public deposits which can be used
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Answer
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For any purpose
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True/False
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Question
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Fixed Assets turnover ratio is the
relationship between fixed assets and owner's funds
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Answer
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FALSE
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Multiple Choice Single
Answer
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Question
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Live Stock is an example of
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Answer
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Fixed Asset
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Multiple Choice Single
Answer
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Question
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The Policy which attracts the
shareholders who are willing to devote short term dividend income for long
term capital gains and share in the increased prosperity of the company is
termed as
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Answer
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No immediate Dividend policy
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Multiple Choice
Multiple Answer
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Question
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Assuming the current ratio is 2,
in which cases would the current ratio decline
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Answer
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Purchase of fixed Assets , Borrow
Money on an Interest bearing promissory note
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Select The Blank
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Question
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In ABC analysis C class consist of
________.
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Answer
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a very large number of items which are less
important
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Select The Blank
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Question
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Retained earnings is a source of
________ finance
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Answer
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Internal
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True/False
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Question
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The assumptions of capital
structure theories is that Operating earnings are not expected to grow
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Answer
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True
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Select The Blank
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Question
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Under ________, it is not only
necessary to decide profitable investments but also necessary to rank the
acceptable proposals according to their relative profitabilities
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Answer
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Capital rationing
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Multiple Choice
Multiple Answer
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Question
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The recurring duties of Finance
Executive includes
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Answer
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Working Capital Management , Fixed Assets
management , Control of funds
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Multiple Choice Single
Answer
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Question
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The effect of Purchase of building
against a long term loan payable on funds ( cash concept ) is
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Answer
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No change in cash
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Multiple Choice
Multiple Answer
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Question
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The classification of ratios under
miscellaneous group includes
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Answer
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Earnings per share , Dividend
Payment ratio
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Multiple Choice
Multiple Answer
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Question
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Shortcomings of Debentures from
company's point of view
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Answer
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The debenture interest and capital
repayment are obligatory payments , Debenture financing enhances the
financial risk associated with the firm
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Multiple Choice
Multiple Answer
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Question
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Earnings / Price Approach to
compute cost of equity shares is objected on the following grounds
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Answer
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It wrongly assumes that earnings per share
will remain constant in future , All the earnings may not be distributed
among the shareholders by way of dividend
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True/False
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Question
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Inventory is the intermediate
stage between purchase of raw materials and consumption of raw materials
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Answer
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True
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True/False
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Question
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Funds flow statements and cash
flow statement are one and the same
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Answer
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False
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Multiple Choice Single
Answer
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Question
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The Proprietary concern is owned
by
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Answer
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Only one person
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Select The Blank
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Question
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Modigliani - Miller approach
closely resembles ________ approach
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Answer
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Net operating income
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Multiple Choice Single
Answer
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Question
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The main function of finance under
the traditional approach comprises of
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Answer
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Procurement of funds
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Select The Blank
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Question
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________ financing is more
preferred route for venture capital funding
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Answer
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Equity
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Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.
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