Which of the following statements is true of rationalized production?
A) It depends on a large number of distribution channels which leads to inefficiency.
B) It depends on a large number of distribution channels which increases the cost of production.
C) It can bring the entire production process to a standstill, if work is stopped in one country.
D) It is an unethical method of production as it uses questionable labor practices to reduce costs.
Answer is C) It can bring the entire production process to a standstill, if work is stopped in one country.
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Indicate whether the statement is true or false.
A difference between a contract issued on a "named peril" basis versus an "open peril" or "all-risk" basis is:
A) the "named peril" contract usually covers more perils B) the "named peril" contract is usually more expensive than the "open peril" contract C) in the "named peril" contract the insured must prove the peril is covered where in the "open peril" contract the burden of proof is on the insurer to show no coverage D) in the "open peril" or "all risk" contract there are no exclusions to loss