Morris Company self-insures its workers compensation loss exposure. The risk manager of Morris Company is concerned about the possible impact of a single catastrophic claim
She decided to set a retention limit of $500,000 per-claim, and to purchase insurance that will be begin to pay once Morris Company has paid $500,000 on a single claim. The insurance the risk manager purchased is called
A) captive insurance.
B) excess insurance.
C) primary insurance.
D) umbrella insurance.
Answer: B
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The current ratio is computed by adding current assets and current liabilities
Indicate whether the statement is true or false
The Z-value for a desired service level of 0.95 is ________
A) 1.28 B) 1.65 C) 1.96 D) 2.33 E) 2.58
Unless a contract provides otherwise, it is assumed to be a shipment contract.?
Indicate whether the statement is true or false
Emily runs a children's clothing boutique which takes in local homemade items on a consignment basis. Her standard form contract indicates that Emily has the right to put items on sale without prior approval, but does not specify what effect the sale has on the consignor's payment percentage. Her intent is to keep the same profit she would have had without the sale. She is using ambiguity in her
contract to increase her sales and profit. Indicate whether the statement is true or false