QUESTION A computer or mobile device that uses Web access to obtain computing resources from data centers around the world is utilizing cloud computing. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Cloud computing is using Web access to obtain only the computing resources a user needs, from anywhere around […]
QUESTION Suppose Pearce is at present in good health. Which factor most favors creating a health savings account (HSA) to ease the burden on the employee? A) Pearce at present does not have savings that would pay for a major medical emergency. B) HSA-eligible health plans typically have lower premiums. C) The HMO previously used […]
QUESTION Encryption alters readable data into an unreadable form to prevent unauthorized access. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Encryption uses mathematical algorithms to create complex coded messages that are difficult or almost impossible to break without the encryption key.
QUESTION Suppose Pearce has a pre-existing condition that requires regular treatment. Which factor makes creating a flexible savings account (FSA) a less attractive option for this employee? A) Not all the providers Pearce uses are comfortable with taking a spending account card in payment. B) Pearce now cannot use FSA funds for over-the-counter medications such […]
QUESTION Given that Lighthouse is a nonprofit organization of modest size, which of the following is the least feasible option for the employer? A) an onsite wellness healthcare clinic B) a major medical benefits program with a larger deductible C) a healthcare program using a point-of-service system D) using an external source to administer healthcare […]
QUESTION All of the following weaken the claim that PMI charges accurately reflect the risk of loan default EXCEPT: A) The cost of private mortgage insurance goes up as the size of a mortgage increases. B) Well-informed buyers can avoid paying PMI if they are aware of loan products that divide up their mortgages into […]
QUESTION Which of the following is NOT an example of a risk covered under professional liability insurance? A) Several years ago, McDonald’s restaurant was sued when a woman burned herself on hot coffee she spilled in her lap. B) A woman sued her hair salon after a color treatment left her with bald, burned spots […]
QUESTION What are speculative risk and pure risk? What will be an ideal response? ANSWER Answer: Speculative risk involves a chance of either gain or loss. Pure risk involves a chance for either loss or no loss; there is no possibility of gain. Explanation: Speculative risk is the kind of risk that a company […]
QUESTION What is the difference between avoiding risk and reducing risk? What will be an ideal response? ANSWER Answer: Risk avoidance is the practice of avoiding risk by not participating in risky activity. Risk reduction is the practice of reducing risk by removing hazards or taking preventive measures. Explanation: Two additional ways that businesses […]
QUESTION What are self-insurance and risk transfer? What will be an ideal response? ANSWER Answer: Self-insurance is the practice in which a company sets aside money to cover losses with its own funds. Risk transfer is the practice whereby a company transfers its risk to an insurance company in return for a fee. Explanation: […]
