Some people question the usefulness of Frederick Taylor's principles of scientific management in today's service-dominated economy. For which economic settings were Taylor's principles originally intended?

In-group favoritism occurs when people overrate the quality of their work or the extent of their group contributions.

a. true b. false

Archibald surrenders a life insurance policy and receives a lump-sum cash payment of $32,000. His premium payments up to the time of surrender amounted to $26,000. How is the surrender treated for tax purposes?

A) Archibald will receive $6,000 tax-free and will be taxed on his $26,000 cost basis. B) The full $32,000 is received tax-free. C) The full $32,000 is taxable as ordinary income. D) Archibald will receive his $26,000 cost basis tax-free and will be taxed on $6,000.