The _____ clause in an insurance policy relieves the insurer
of responsibility to pay for policyholder_s losses below a
Which of the following risks will always be insured in a
Which of the following actions can prevent migration of
individuals from one health insurance policy to another?
An individual will be considered risk neutral if:
Which of the following practices of insurers deter moral
Which of the following is an example of a moral hazard?
______ provisions in an insurance policy stipulate that it
will pay only a certain percentage of losses claimed by the
Which of the following can be a signal of product quality to
An insured person_s incentive to behave in ways that raise
the probability of a claim is known as:
The effects of asymmetric information in the car market can
be weakened by:
Which of the following is an example of asymmetric
If a purchase contract allows a buyer to accept less than a
specified maximum “take” each month, buying a _____ would allow
seller to resell the excess at a _____ price.
Which of the following were discovered in a Federal Trade
Commission Study of 8,000 new and used Corvettes sold on eBay
between 2001 and
Which of the following theories states that people who are
highly risk-averse are less likely to engage in high-risk
An outside organization trying to gain control of a
corporation offers a _____ by announcing its intent to purchase up
to a certain
number of the target’s shares at a premium over their market
In business organizations, the specialization of workers and
their assignments to different tasks is called:
A _____ generally has less understanding of the firm than a
manager and has little knowledge that is likely to improve the
quality of the
_____ have no decision-making powers but can lose no more
than what they have invested.
A sole proprietorship is characterized by:
_____ are legal and contractual mechanism[s] for creating
and operating a business for profit, using capital from investors
that will be
managed on their behalf by directors and officers.
When a single individual performs all the steps involved in
the production process he/she incurs:
Which of the following properties is common to a partnership
Which of the following _shareholder rights_ plan when
implemented provides all shareholders other than outsiders the
purchase additional shares at a discount?
_____ is a property which distinguishes corporations from
proprietorships and partnerships.