QUESTION Which of the following involves speculative risk? A) boycotts B) hurricanes C) arson D) lightning strikes E) new products ANSWER Answer: E Explanation: E) Speculative risk involves a chance of either gain or loss. This is the kind of risk that a company takes when it introduces a new product, which may make […]
QUESTION Which insurance principle is correctly paired with its definition? A) principle of economically feasible premium: the principle that states that insurers will not pay the insured more in damage claims than the dollar loss actually sustained B) principle of indemnity: the principle that groups that are more apt to need insurance are also those […]
QUESTION Bryce hired a contractor to fix a leak in the roof of the musical instrument factory where he worked as facilities manager. The contractor came and removed the rotted wood from the roof, covered the hole with a tarp, and promised to be back the next day. The contractor did not show up for […]
QUESTION Who is most likely to pay the most for life insurance? A) teachers B) construction workers C) crab fishermen D) engineers E) doctors ANSWER Answer: C Explanation: C) The fatality rate for commercial fishing workers, who are routinely exposed to stormy seas, dangerous equipment, and slippery decks, is 200 fatalities per 100,000.
QUESTION Torgo’s CEO takes the position that opening permanent operations in Sri Lanka will benefit the company as well as Sri Lanka itself. Which of the following, if true, most weakens the CEO’s position? A) Asian countries tend to have large amounts of inexpensive labor available. B) Torgo Software employs some of the best IT […]
QUESTION After the contract has been negotiated and approved by both sides, a situation arises in which a new employee is slightly sickened when a supervisor instructed her to enter a greenhouse too soon after fumigation. The worker, accompanied by a union steward, presents a grievance to the supervisor, who insists that the injury was […]
QUESTION Which of the following, if true, most strengthens the CEO’s argument for undertaking operations in Sri Lanka? A) The cost of living is much lower in Sri Lanka than in the United States. B) Few other similar companies do business in Sri Lanka. C) Unemployment is currently very low in Sri Lanka. D) Labor […]
QUESTION Which of the following is the LEAST appropriate way to engage in offshoring operations? A) Choose offshoring companies and suppliers in which candidates meet a complete set of requirements. B) Commit to consistently effective communication with offshore suppliers. C) Collaborate with chosen suppliers so as to develop their competencies. D) Give offshore suppliers as […]
QUESTION Which of the following is the LEAST appropriate way for the company to get its current employees on board with the offshoring plan? A) Carefully plan offshoring so as maintain the company’s core competencies. B) Redeploy any laid-off workers to other positions in the company or to other companies. C) Inform middle managers that […]
QUESTION With which of the following statements would Granger and Harrison both agree? A) Outsourcing has the potential to cause large-scale shifts in the world economy. B) Outsourcing does not lead to any job loss for workers in developed economies. C) Outsourcing leads to net improvements in the world economy. D) Outsourcing leads to loss […]
