CT-9 Business Awareness: Points to remember

If you want to appear for CT-9 this diet, then you are at the right place. Although CT-9 is regarded as the easiest Actuarial Paper to clear, it requires analytical skills to solve Case Studies that are asked about in the online exam. This particular article focuses on Points to remember and Quick tips for the exam.

Which also can be helpful before facing interviews. Hence, the following are some probing questions that might act as aid as and when the situation arises.

In the business game, The Way Forward, which one of the following defines the ‘cost of sales’ in the Profit and Loss Account?
A. The purchase cost of all the items purchased by a team in the time period.
B. The purchase cost of all the items sold by a team in the time period.
C. The cost of all the items currently held in stock by a team.
D. The total costs incurred in marketing, selling and distribution of the items sold in the period.
✓ Correct Answer is B. The cost of sales was defined as the amount a team had to pay for all the items that it sold during the period.

One form of research used with consumers to explore their needs is called Conjoint Analysis. For what precise purpose would you use this research? Choose the correct statement.
A. To discover how they rate the importance and quantify the value of different attributes of a product or service.
B. To find out which types of people would buy the product or service.
C. To see in what different types of circumstances people might use the product or service.
D. To find out what attributes of the product they are most familiar with.
✓ Correct Answer is A. Conjoint means ‘CONsiderJOINTly and is devised to help people explain what trade-offs they would make between attributes.

All except two of the following would be appropriate criteria to test whether a potential segment should be a viable target. Select the two which are NOT real tests of segment viability.
A. Distinctiveness – are the customer needs sufficiently different to require some adaptation to product, service or communications?
B. Significance – is the segment large enough to create volume sales, or to include the target customers willing to pay an acceptable price to you?
C. Defendable – can you serve the segment better than competitors?
D. Exclusive channels – are there channels of communication or distribution exclusively devoted to reaching these targets?
E. Stability – has the segment been recognized and established for a long time, ensuring it will remain unchanged in the future?
✓ Correct Answer is D and E are NOT real tests of whether you have found a true segment.
D – although it is vital to have channels of communication and distribution they do not have to be exclusive.
E – a long established segment is likely to be served already and using this criterion would, in any case, eliminate interesting emerging segments.


All except two of the following would be appropriate criteria to test whether a potential segment should be a viable target. Select the two which are NOT real tests of segment viability.

A. Distinctiveness – are the customer needs sufficiently different to require some adaptation to product, service or communications?
B. Significance – is the segment large enough to create volume sales, or to include the target customers willing to pay an acceptable price to you?
C. Defendable – can you serve the segment better than competitors?
D. Exclusive channels – are there channels of communication or distribution exclusively devoted to reaching these targets?
E. Stability – has the segment been recognized and established for a long time, ensuring it will remain unchanged in the future?
Correct Answer is D and E are NOT real tests of whether you have found a true segment.
D – although it is vital to have channels of communication and distribution they do not have to be exclusive.
E – a long established segment is likely to be served already and using this criterion would, in any case, eliminate interesting emerging segments.

If you were classifying a company in terms of how it made decisions when responding to changing market conditions, which one of the following descriptions would define a ‘defender’?
A. Historically successful, but conservative, and potentially becoming complacent. Will raise quality and cut prices to improve market position.
B. Historically successful, by adopting high-risk strategies. Keen on detailed analyses to improve ideas.
C. Dynamic, risk-taking. Constantly looking for new opportunities. Not keen to wait around for detailed analyses.
D. Not keen on high risk, but keen to adapt and improve ideas. Often achieve strong returns and visibility in the market.
✓ Correct Answer is A. Defenders are often well-established companies with a strong position that needs defending from others seeking to steal market share from them.
They have resources they can use to attack competitors. Sometimes their relative strength can make them overconfident.
D- describes Fast Follower organizations who are less happy with high risk than Innovators, but can often achieve greater returns and visibility than Innovators gain.
B – describes a combination of Defenders, Innovators, and Fast Followers.
C – describes Innovators

Which of the following is a wrong combination of an industry and its regulator? Which one of the following has been the result of recent developments?
A. Insurance – IRDA
B. Banking – RBI
C. Financial markets – SEBI
D. None of the above
✓ Correct Answer is D

Which of the following statements is correct?
A. The court will apply the curious bystander test when deciding if a term is an imposed term.
B. When applying the parol evidence rule, the court will take into account not only the written contract itself but also all the surrounding circumstances to ascertain what the true terms of the contract are.
C. The courts may order rectification of a written contract if, at the time of verbal negotiations, the parties were both of the same minds, but the written contract contains an error and does not conform to the parties’ true intentions.
D. All contracts must be in writing to be valid.
✓ Correct Answer is C. According to the common law, a contract need not be in writing. The only time a contact needs to be in writing is when a statute requires the contract to be written. The curious bystander test is used to imply a term into a contract. According to the common law, the parol evidence rule prevents parties
from relying on extrinsic evidence to construe the terms of an agreement that is reduced to writing.

Select the one statement below that correctly defines the difference between deductive synthesis and creative synthesis?
A. In deductive synthesis, the new fact is implicit in the old ones, while in the creative synthesis
the new fact is explicit in the old ones.
B. In deductive synthesis, facts are found building the data from a hypothesis, while in creative synthesis facts are created by some additional insight.
C. In deductive synthesis, facts are found by reducing the data down to the fact, while in creative synthesis facts are created by some additional insight.
D. In deductive synthesis, the outcome is created by adding insight, while in creative synthesis removing details creates the outcome.
✓ Correct Answer is C. In deductive synthesis, facts are critical to the outcome, while creative synthesis facts are not relevant to the outcome.

Hope this helps while reviewing and may success be at your doorstep at every moment of your life.
Thank you.

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