Grace is a life insurance agent. She is attempting to sell a large life insurance policy, but the prospective purchaser is having second thoughts

To persuade the prospective purchaser, Grace said, "I will earn a $1,000 commission if you buy this policy. I'll give you $500 of my commission if you buy the policy." In most states, what illegal sales practice will Grace be guilty of if she splits her commission with the purchaser?
A) rebating
B) churning
C) twisting
D) backdating


Answer: A

Business

You might also like to view...

Indicate whether each of the following statements is true or false.Volume measures include number of labor hours, quantity of direct materials used, and number of units sold.  A variable overhead cost should be allocated to cost objects using a volume measure as the allocation base.  A causal relationship exists between a fixed overhead cost and the volume of production.  The allocation base used by a manufacturer to allocate overhead costs may affect the apparent profitability of the various products the company makes.  Fixed indirect costs are often allocated using arbitrary allocation bases.  

What will be an ideal response?

Business

In a just-in-time (JIT) environment, the optimal situation is to have only one vendor for any given item

Indicate whether the statement is true or false

Business

In today's global market, U.S. companies using traditional mass manufacturing methods are:

A. More efficient and highly competitive B. No longer competitive C. As competitive as other methods of production D. Rebounding and becoming more competitive again

Business

The word "telephone" comes from the Greek "tele," meaning at a distance, and "phone," meaning signal. _________________________

Answer the following statement true (T) or false (F)

Business