A+ Answers of the following Questions

1. Internet Services, Inc. (ISI), is an Internet service provider. ISI does not create, but disseminates, a defamatory statement by Jill, its customer, about Ron. Liability for the remark may be imposed on 

a. ISI and Jill.
b. ISI or Jill, but not both.
c. ISI only.
d. Jill only.

2. Jill offers to sell her car to Kelly, stating that the offer will stay open for thirty days. Jill may revoke the offer 

a. before Kelly accepts the offer.
b. before thirty days have expired, whether or not Kelly has accepted the offer.
c. only after Kelly accepts the offer.
d. only after thirty days.

3. Donna applies to Eagle Corporation for an administrative assistant's job, which requires certain typing skills. Donna cannot type but tells Eagle that she is willing to learn. Eagle does not hire Donna, who later sues. To successfully defend against the suit under Title VII, it would be best for Eagle to show that 

a. being a member of the majority is a BFOQ.
b. Donna was not willing to learn to type.
c. Eagle has a valid business necessity defense.
d. Eagle's work force reflects the same percentage of mem¬bers of a protected class that characterizes qualified individuals in the local labor market.

1. (TCO 8) Cash-value life insurance is more expensive than term insurance because: (Points : 3)
it is usually sold to older people who have higher mortality rates.
higher rates of interest are earned on term policy investments.
whole life is subject to adverse selection.
the whole life contracts include both a protection element and a savings or investment element.
none of the above.


2. (TCO 8) All of the following are factors used in computing life insurance rates except: (Points : 3)
a rate of interest.
morbidity.

mortality.
expenses of the insurer.
none of the above.


3. (TCO 8) Under the conversion privilege of a convertible term life insurance policy: (Points : 3)
the insured may convert to another term policy at expiration.
the insured may convert to another term policy prior to expiration.
the insured may convert to a whole life policy prior to expiration.
the insured may convert to a whole life policy after expiration.
all of the above.

1. (TCO 8) The risk of income loss resulting from premature death: (Points : 3)
is universal, since death is inevitable.
has approximately the same probability as the risk from superannuation.
may or may not exist for a particular life, depending on the circumstances.
is more important than the risk of disability, since the probability of loss is higher.
none of the above.


2. (TCO 8) A misstatement of age by an applicant for life insurance: (Points : 3)
voids the policy if discovered during the contestability period.
makes the policy voidable at the option of the company if discovered during the contestability period.
has no effect on the policy unless it is discovered during the contestability period.
changes the amount of insurance to the amount that the premium paid would have purchased at the correct age.
none of the above.

3. (TCO 8) Which of the following policies purchased at age 35 would provide the highest cash value at age 65? (Points : 3)

Whole life policy
Paid up at 65 life policy
Term insurance to age 65
Twenty-payment life policy
They would all have the same cash value at age 65.

1. David, the human resources director for Eagle Manufacturing Company, attempts to comply with the law in dealing with applicants and employees. One of the major challenges that David confronts is that the legality of an action is 

a. Absolute and unchanging
b. Based on social responsibility notions
c. Based on ethical standards
d. Not always clear.


2. Kitchen Appliances, Inc., markets a product that is capable of seriously injuring consumers who misuse the product in a foreseeable way. What statement best describes the company's resulting duty to consumers? 
a. The company will owe a legal duty to consumers since it is an insurer against all harms caused by its products.
b. The company will not have any ethical duty to consumers if it contributes to charities in communities where some injured consumers live.
c. The impact of any decision on the firm's profits supersedes any and every ethical duty to consumers.
d. None of the above.

3. Zapco is a small company of 14 employees that makes fireworks. The company contributes to local charities and sponsors a youth sports team. Federal safety regulations require that large firecrackers have two dividing walls inside, so that all their gunpowder does not explode at once. Zapco is unaware of the regulations, and includes only one dividing wall in each of its large firecrackers. Little Timmy lights a Zapco firecracker, and before he can throw it, it explodes and seriously injures him. At the trial, it is established that a second dividing wall would have prevented the harm. Zapco is best described as 

a. Not morally responsible since they are good corporate citizens in the local community

b. Not morally responsible since they were unaware of the regulations and they were just a small company
c. Not legally responsible because their company employs under 15 people and they were unaware of the regulations
d. None of the above.


4. Which of the following questions should be answered first in the process of ethical decision-making in business? 

a. Is the action profitable?
b. Is the action moral?
c. Is the action a socially responsible one?
d. Is the action good public relations?

1. (TCO 8) Which of the following policies purchased at age 35 would provide the highest cash value at age 65? (Points : 3)
Whole life policy
Paid up at 65 life policy
Term insurance to age 65
Twenty-payment life policy
They would all have the same cash value at age 65.


2. (TCO 8) Under the grace period clause used in life insurance: (Points : 3)
the policy is continued for 60 days after a premium due is in default.
the policy is continued for 30 days under the extended term option.
any premium in default will be deducted from the face amount of the policy if the insured should die during the period.
any premium in default will be waived if the insured should die during the period.
none of the above.

3. (TCO 8) A policy will be paid-up when: (Points : 3)
the face amount becomes payable.

only after a specified number of years.
when the policy reserve equals the present value of future benefits.
when the policy reserve minus future premiums equals the face of the policy.
none of the above.