Some mutual companies have gone through a conversion process and have become stock insurance companies. All of the following are advantages of the stock form of organization relative to the mutual form of organization EXCEPT:
(a) the ability to offer stock options may make it easier to attract and retain key personnel
(b) it's easier to raise capital as a stock organization
(c) stock insurance companies are exempt from state premium taxes and federal income taxes
(d) stock insurers have greater flexibility to expand by acquiring other companies
Ans: (c) stock insurance companies are exempt from state premium taxes and federal income taxes
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A(n) ______-anchored rating scale is a type of appraisal that rates employee gradations in performance according to scales of specific behaviors.
Fill in the blank(s) with the appropriate word(s).
Which of the following is true of unethical corporate behavior?
A. Unethical corporate behavior is the sole responsibility of unethical individuals. B. Managers must adhere to firm standards in different cultural contexts rather than decide when relativism is appropriate. C. Business ethics are shaped exclusively by laws and by individual development and virtue. D. Companies with international activities find it easier to maintain a positive ethical climate. E. Unethical corporate behavior reveals a company culture that is ethically lax.