Question 1

If the insured's circumstances change during the term of an insurance contract:

Accepted Answer

A) they have no obligation to notify the insurer unless the risk under the insurance contract is dramatically changed. 
B) they must tell the insurer if the change minimises the insurance risk. 
C) they must tell the insurer if the change increases the insurance risk. 
D) they must tell the insurer on request even if the change is unlikely to affect the risk. 
A) they have no obligation to notify the insurer unless the risk under the insurance contract is dramatically changed. 
B) they must tell the insurer if the change minimises the insurance risk. 
C) they must tell the insurer if the change increases the insurance risk. 
D) they must tell the insurer on request even if the change is unlikely to affect the risk. C

Question 2

Sale of which of the following products will not attract an excise duty?

Accepted Answer

A) Tobacco 
B) Bread 
C) Petrol 
D) Coal 
A) Tobacco 
B) Bread 
C) Petrol 
D) Coal B

Question 3

GST is payable on the sale of:

Accepted Answer

A) luxury vehicles. 
B) fringe benefits. 
C) medical care. 
D) bread, milk and eggs. 
A) luxury vehicles. 
B) fringe benefits. 
C) medical care. 
D) bread, milk and eggs. A

Question 4

Which of the following need not occur in order for an insurance contract to be formed?

Accepted Answer

A) The engagement of an insurance broker by the insured. 
B) The completion of a proposal by the insured. 
C) The payment of a premium by the insured. 
D) The acceptance of the risk by the insurer. 
A) The engagement of an insurance broker by the insured. 
B) The completion of a proposal by the insured. 
C) The payment of a premium by the insured. 
D) The acceptance of the risk by the insurer.

Question 5

Whether a trust has an income tax liability does not depend on which of the following?

Accepted Answer

A) Whether the income earned by the trust is distributed to its beneficiaries. 
B) The wording of the trust deed. 
C) The type of trust. 
D) Whether the trust has a TFN. 
A) Whether the income earned by the trust is distributed to its beneficiaries. 
B) The wording of the trust deed. 
C) The type of trust. 
D) Whether the trust has a TFN.

Question 6

What is a 'pure endowment' policy?

Accepted Answer

A) A life insurance policy that provides for the payment of a specific sum when the insured dies or reaches a certain age. 
B) An endowment policy in which there is a provision that if the insured dies before a specified date the insurer is only required to refund the premiums. 
C) A policy that provides for the payment of a specific sum upon the insured's death within a specified period. 
D) A type of indemnity insurance contract that provides for the payment of money on the happening of a particular contingency. 
A) A life insurance policy that provides for the payment of a specific sum when the insured dies or reaches a certain age. 
B) An endowment policy in which there is a provision that if the insured dies before a specified date the insurer is only required to refund the premiums. 
C) A policy that provides for the payment of a specific sum upon the insured's death within a specified period. 
D) A type of indemnity insurance contract that provides for the payment of money on the happening of a particular contingency.

Question 7

If on paying an insurance claim the insurer assumes all of the insured's rights in relation to the subject of matter of the insurance:

Accepted Answer

A) the insurer is exercising its right of subrogation. 
B) the insurer is likely to be related to the insured or is the insured's employee. 
C) the insurer cannot sue a third party who caused the loss. 
D) the insured person's admission of liability will not prejudice the insured's claim. 
A) the insurer is exercising its right of subrogation. 
B) the insurer is likely to be related to the insured or is the insured's employee. 
C) the insurer cannot sue a third party who caused the loss. 
D) the insured person's admission of liability will not prejudice the insured's claim.

Question 8

Which of the following statements about stamp duty is not true?

Accepted Answer

A) It is a tax paid on the value of transactions. 
B) It is also known as a general duty. 
C) It is a federal tax. 
D) It is also known as a transfer duty. 
A) It is a tax paid on the value of transactions. 
B) It is also known as a general duty. 
C) It is a federal tax. 
D) It is also known as a transfer duty.

Question 9

The duty to disclose facts under the Insurance Contracts Act 1984 extends to facts that are:

Accepted Answer

A) material. 
B) known. 
C) novel. 
D) new. 
A) material. 
B) known. 
C) novel. 
D) new.

Question 10

A contract uberrimae fidei is a contract:

Accepted Answer

A) of the utmost good faith. 
B) at arm's length. 
C) between strangers. 
D) of insurance. 
A) of the utmost good faith. 
B) at arm's length. 
C) between strangers. 
D) of insurance.

Question 11

Which of the following is not a form of tax payable to the Federal government?

Accepted Answer

A) Income tax 
B) Capital gains tax 
C) Fringe benefits tax 
D) Payroll tax 
A) Income tax 
B) Capital gains tax 
C) Fringe benefits tax 
D) Payroll tax

Question 12

Johnny is a sole trader.He will pay income tax at the relevant:

Accepted Answer

A) sole trader rate. 
B) individual rate. 
C) corporate rate. 
D) business rate. 
A) sole trader rate. 
B) individual rate. 
C) corporate rate. 
D) business rate.

Question 13

Which of the following is not one of the tax implications for a business of having a company structure?

Accepted Answer

A) A company is a separate legal entity and has its own TFN. 
B) A company pays tax at the corporate rate. 
C) A self-assessment scheme applies. 
D) A company is not obliged to pay PAYG instalments. 
A) A company is a separate legal entity and has its own TFN. 
B) A company pays tax at the corporate rate. 
C) A self-assessment scheme applies. 
D) A company is not obliged to pay PAYG instalments.

Question 14

Which of the following is not a type of life insurance policy?

Accepted Answer

A) A whole of life policy 
B) A termination policy 
C) An endowment policy 
D) An annuity policy 
A) A whole of life policy 
B) A termination policy 
C) An endowment policy 
D) An annuity policy

Question 15

The insurer will not be deemed to have waived compliance with the duty of disclosure in relation to a question included in a proposal form about a matter when:

Accepted Answer

A) the insured fails to answer a question. 
B) the insured gives an incomplete answer. 
C) the insured gives an irrelevant answer. 
D) the insured gives an untrue answer. 
A) the insured fails to answer a question. 
B) the insured gives an incomplete answer. 
C) the insured gives an irrelevant answer. 
D) the insured gives an untrue answer.

Question 16

When Zack Simmons insured 'Xanadu' bowling alley with Clayton's Insurance Co, he completed the proposal forms on his kitchen table before dashing out the door to attend a State of Origin football game.Because he answered the questions on the proposal in a rush, he described Xanadu as being constructed of brick and iron.However in truth, two of the walls were brick and the other two were made of wood, with an iron roof, and Xanadu was in a very derelict state.When Xanadu was damaged in a storm, the insurer refused to pay the claim because of the misrepresentation.Is the insurer entitled to refuse the claim?

Accepted Answer

A) Yes, if it can prove that if it had correct information about Xanadu at the time it would have declined to provide insurance. 
B) Yes, if it can prove that the misrepresentation was innocent. 
C) No.The insurer should have checked the construction materials itself. 
D) No.To do so it must be proven that the misrepresentation was fraudulent. 
A) Yes, if it can prove that if it had correct information about Xanadu at the time it would have declined to provide insurance. 
B) Yes, if it can prove that the misrepresentation was innocent. 
C) No.The insurer should have checked the construction materials itself. 
D) No.To do so it must be proven that the misrepresentation was fraudulent.

Question 17

What is 'land tax'?

Accepted Answer

A) A state tax payable on the unimproved value of land. 
B) A federal tax payable on the gain made on the sale of land. 
C) A local government tax on land paid to fund the provision of basic services to that land. 
D) An archaic form of tax paid to the monarch. 
A) A state tax payable on the unimproved value of land. 
B) A federal tax payable on the gain made on the sale of land. 
C) A local government tax on land paid to fund the provision of basic services to that land. 
D) An archaic form of tax paid to the monarch.

Question 18

Which of the following is not one of the tax implications of being in a partnership?

Accepted Answer

A) The partnership has to lodge an annual partnership return. 
B) The partnership must be registered under the PAYG instalments scheme. 
C) The partnership has its own TFN and can apply for an ABN. 
D) The partnership pays tax in its own name. 
A) The partnership has to lodge an annual partnership return. 
B) The partnership must be registered under the PAYG instalments scheme. 
C) The partnership has its own TFN and can apply for an ABN. 
D) The partnership pays tax in its own name.

Question 19

Which of the following is a form of tax payable to local authorities?

Accepted Answer

A) Stamp duty 
B) Pay-roll tax 
C) Land tax 
D) Rates 
A) Stamp duty 
B) Pay-roll tax 
C) Land tax 
D) Rates

Question 20

A company must pay superannuation to which of the following parties?

Accepted Answer

A) Non-eligible employees 
B) Directors 
C) Shareholders 
D) Suppliers 
A) Non-eligible employees 
B) Directors 
C) Shareholders 
D) Suppliers

If the insured's circumstances change during the term of an insurance contract:

Sale of which of the following products will not attract an excise duty?

GST is payable on the sale of:

Which of the following need not occur in order for an insurance contract to be formed?

Whether a trust has an income tax liability does not depend on which of the following?

What is a 'pure endowment' policy?

If on paying an insurance claim the insurer assumes all of the insured's rights in relation to the subject of matter of the insurance:

Which of the following statements about stamp duty is not true?

The duty to disclose facts under the Insurance Contracts Act 1984 extends to facts that are:

A contract uberrimae fidei is a contract:

Which of the following is not a form of tax payable to the Federal government?

Johnny is a sole trader.He will pay income tax at the relevant:

Which of the following is not one of the tax implications for a business of having a company structure?

Which of the following is not a type of life insurance policy?

The insurer will not be deemed to have waived compliance with the duty of disclosure in relation to a question included in a proposal form about a matter when:

What is 'land tax'?

Which of the following is not one of the tax implications of being in a partnership?

Which of the following is a form of tax payable to local authorities?

A company must pay superannuation to which of the following parties?

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Enforcement of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Employing Workers

Managing a Business: Closing Down

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Exam 18: Managing a Business: Insurance and Taxes

If the insured's circumstances change during the term of an insurance contract:

Sale of which of the following products will not attract an excise duty?

GST is payable on the sale of:

Which of the following need not occur in order for an insurance contract to be formed?

Whether a trust has an income tax liability does not depend on which of the following?

What is a 'pure endowment' policy?

If on paying an insurance claim the insurer assumes all of the insured's rights in relation to the subject of matter of the insurance:

Which of the following statements about stamp duty is not true?

The duty to disclose facts under the Insurance Contracts Act 1984 extends to facts that are:

A contract uberrimae fidei is a contract:

Which of the following is not a form of tax payable to the Federal government?

Johnny is a sole trader.He will pay income tax at the relevant:

Which of the following is not one of the tax implications for a business of having a company structure?

Which of the following is not a type of life insurance policy?

The insurer will not be deemed to have waived compliance with the duty of disclosure in relation to a question included in a proposal form about a matter when:

What is 'land tax'?

Which of the following is not one of the tax implications of being in a partnership?

Which of the following is a form of tax payable to local authorities?

A company must pay superannuation to which of the following parties?

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Enforcement of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Employing Workers

Managing a Business: Closing Down

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