TOPICAL EXAMINATIONS

INSURANCE
SECTION A
 
1. Multiple choice questions
 
 (i) Which of these is not a term related to insurance?

A.               Indemnity
B.                Coverage
C.                Misuse alert

D.               Annuity

(ii) Insurance works on the principle of:

A.               Sharing of losses
B.                Probabilities
C.                Large numbers

D.               Randomness.

(iii) Insurance help to:-

A.               Prevent adverse situation from occurring

B.                Reduce financial consequences of adverse situation

C.                Negate all consequences of adverse situation

D.               Make assets continuously productive

(iv) The term risk includes

A.               Damage to machinery and property

B.                Impacts of health or life of a person
C.                Leakage of toxic products into atmosphere

D.               Effect on health life on neighborhood.

(v) The principle of ______ ensure that an insured does not profit by insuring with multiple
insurers

A.               Subrogation
B.                Contribution
C.                Co – insurance

D.               Indemnity

(vi) Fidelity guarantee policies cover losses due to fraud by?

A.               Employee
B.                Borrowers
C.                Suppliers

D.               Customers.

(vii) A policy where policy holder makes a one – time payment of premium is called?

A.               Money back – policy

B.                Single premium policy

C.                Salary saving scheme policy

D.               Half – yearly policy

(viii) _________ may be described as a social device to reduce or eliminate risk of loss to life
and property 

A.               Investment
B.                Saving

C.                Insurance

D.               Loan.

(ix) Which of the following types of insurance is mandatory?

A.               Motor own damage

B.                Motor third park legal liability

C.                Personal accident insurance

D.               Product liability

(x) The document which embodies the contract in insurance is called

A.               Security
B.                Policy
C.                Certificate

D.               None of these

 
2. Match the following items:
 
List A List B
(i)                Be honest to each party A.               Double insurance
(ii)              Claimed amount from third party B.                Principle of indemnity
responsible for loss C.                Principle of subrogation

(iii)            Insured must treasure subject matterD.               Utmost good falls

(iv)            Principle of nearest cause E.                Principle of proximity

(v)              Money paid for insurance cause

F.                 Premium
 G. Insurance policy
               

 
SECTION B
3. (a) Define the terms below
(i)                Insurance
(ii)              Insurance police
(iii)            Premium
(iv)            Sum insured
(v)              Risk
 
4. (a) Differentiate between insurance and assurance
    (b) Briefly explain historical development of insurance.
 
5. Discuss the need for insurance in our life.
 
6. (a) What is pooling of risk?
    (b) Why is pooling of risk important to insurance companies.
 
7. Explain the following principles of insurance 
(i)                Nature of contract
(ii)              Principle of insurable interest
(iii)            Principle of indemnity
(iv)            Principle of subrogation
(v)              Double insurance
(vi)            Principle of proximity cause
 
8. (a) Differentiate between property insurance and life insurance
    (b) Explain procedure followed when taking an insurance cover.
TOPIC : 4  TAXATION

TOPICAL EXAMINATIONS
TAXATION
SECTION A
 
1. Multiple choice questions
 
 (i) The objective of Taxation by government are;

A.               Raising Revenue
B.                Maintain economic stability
C.                Remove disparities in distribution of income

D.               All of above.
 (ii) Pick out a factor which is not a feature of indirect taxes

A.               Convenience
B.                Tax evasion is difficult

C.                Fair to the poor

D.               Powerful tool of economic policy

(iii) Which factor has no role in the shifting of a tax?

A.               Change in price
B.                Elasticity of demand and supply
C.                Nature of demand

D.               Income of the consumer

(iv) Impact of tax refers to:-

A.               Final money tax

B.                Immediate money burdens
C.                Indirect real burden

D.               None of the above

(v) Principle of equity means?

A.               Tax – payers should pay equal tax

B.                Tax to be paid should be certain

C.                Tax should be allocated fairly and reasonable

D.               Tax payment should be convenient

(vi) An example of direct tax is?

A.               Income tax
B.                VAT
C.                Custom duty

D.               Excise duty.

(vii) One disadvantage of sales tax is that:

A.               It is expensive
B.                It is cheaper

C.                It is regressive

D.               It is oppressive

(viii) An example of progressive tax structure is?

A.               VAT
B. PAYE
               
C. Excise duty
               

D.               Sales Tax

(ix) Non – payable money provided by government to another government is called?

A.               Investment
B.                Grants
C.                Loans

D.               Assistance

 
(x) An advantage of indirect tax is

A.               One pays lump sum

B.                Not everyone pays
C.                Less chance of tax evasion

D.               Government cannot control consumption.

 
2. Match the following items
 
List A List B

(i)                Tax should be allocated fairly and A.                Principle of

reasonable  simplicity
(ii)              Also called Valorem tax B.                 Principle of
(iii)            Ability of tax –payer to understand certainty
taxation C.                Regressive tax
(iv)            Paid by person/entity to whom it is D.               Progressive tax

imposed E.                Indirect tax

(v)              Earn more pay more tax F.                Property tax

G.                Principle of equity

H.               Convenience of tax

 
SECTION B
3. (a) Define taxation
    (b) Give the purpose of Tanzania
 
4. Explain the following principles of Taxation 
a)                  Principle of simplicity
b)                 Principle of convenience 
c)                  Principle of certainty
d)                 Principle of equity
 
5. (a) Differentiate between direct and indirect taxation.
    (b) Explain two types of taxes on property
 
6. (a) Taxes on goods are regressive explain
    (b) What is proportional tax structure?
 
7. Explain five sources of government Revenue.
 
8. Discuss advantages and disadvantages of indirect tax.
 
9. What are advantages and disadvantages of direct tax?