CII Insurance Business and Finance (IBF) - M92 Exam Practice Test

A. Horizontal Integration

B. Conglomerate Diversification

C. Vertical Integration

D. Horizontal Diversification

A. Lower expense ratio.

B. Poor investment returns.

C. Higher solvency margin.

D. Higher premium retention.

A. All amounts owed to the business by other parties.

B. Only for claims payments to third parties.

C. For all incoming cash payments from policyholders.

D. When transactions are settled in a foreign currency.

A. make a proactive contribution to the development of business strategy.

B. outsource all non-core functions.

C. operate entirely independently from day-to-day operations.

D. report directly to the internal audit function.

A. The registration document / Certificate of Incorporation.

B. The Memorandum of Association.

C. The Chairman's Statement.

D. The Articles of Association.

A. Only companies with over 50 shareholders.

B. Only public limited companies.

C. Only those operating in the London Market.

D. All those which are registered with Companies House.

A. Both statements show the company's cash flows and net income.

B. The income statement shows the financial position at a point in time and the balance sheet shows transaction results over the accounting period.

C. The income statement records assets and liabilities, the balance sheet records revenue and expenses.

D. The income statement shows the results of transactions during the accounting period and the balance sheet shows the financial position at a particular point in time.

A. In the notes to the accounts

B. In the auditor's statement

C. It is not required

D. In the directors' report

A. Financial; internal business processes; learning & growth; customer.

B. Regulatory; solvency; liquidity; profitability.

C. Planning; organising; leading; controlling.

D. Shareholder; policyholder; employee; supplier.