QUESTION Which of the following is an example of “going bare”? A) Enrique owns a small recording studio. Despite its size, the studio contains thousands of dollars’ worth of equipment. Enrique has chosen to transfer his risk. B) Hetty owns a small nail salon and the building it is in. Because she perceives the risks […]
QUESTION Which situation is NOT insurable? A) Rita wants to be sure to insure her new riverside cottage from flood damage. B) Trevor wants to purchase hurricane insurance to cover the spectacular ocean view he has from his new home. C) Chad wants to be sure his cattle barns in Kansas are covered in the […]
QUESTION Which situation is insurable? A) Eileen wants to insure her sister’s house against termite damage. B) Billy wants to help his father by holding the workers’ accident insurance for his father’s steel working company. C) Robert wants to take out a policy to protect his nephew’s store from theft. D) Maxine wants to insure […]
QUESTION Which of the following is NOT an insurer’s requirement for coverage? A) The policyholder must have an insurable interest. B) The loss should be accidental. C) The loss should be very great. D) The insurer is able to spread the risk widely. E) The loss must be measurable. ANSWER Answer: C Explanation: C) […]
QUESTION The Plano greenhouse workers produce authorization cards from a majority of current employees and petition for an election. Which of the following is an appropriate and prudent move by management to discourage its workers to vote in favor of joining the union? A) Prohibit distribution of pro-union flyers in snack bars and other nonwork […]
QUESTION Wen owned a fabric-making business. The building and its contents were valued at $500,000. Wen also owned the property on which the building sat. It was valued at an additional $200,000. When the building was struck by lightning and burned to the ground, Wen’s insurance company sent him a check for $500,000. Wen wrote […]
QUESTION Prompted by UFCW representatives, members of the Florabunda workers’ organizing committee develop a campaign to encourage fellow workers to support unionization. Which of the following strategies would be most effective in building support for their effort? A) Post pro-union posters and flyers in public places. B) Focus on specific workplace issues that have been […]
QUESTION Risk management is the process of protecting a company’s assets and earning power by reducing or avoiding the threats posed by speculative risks. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Risk management is the process of protecting a company’s assets and earning power by reducing or avoiding the […]
QUESTION While bargaining over the workplace safety issue, which of the following strategies is most beneficial in keeping the process moving ahead in good faith? A) Be aware that each side needs to show that it has obtained important concessions. B) Be as flexible as possible with the objectives behind each bargaining move. C) Warn […]
QUESTION A large automobile manufacturer was forced to shut down for six days because of a long-term blackout in town, but insurance covered income loss and expenses. That means the company had business-interruption service. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Business-interruption insurance covers loss of income and expenses […]
