Which of the following situations would be covered under the liability section of the PAP?
I. A mechanic is sued by a pedestrian who is injured when the mechanic has an accident while road testing the insured's auto.
II. The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
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When delivering bad news to employees, which of the following would be the most appropriate channel of delivery?
A) Social networking site B) Email C) In person D) Via telephone E) Formal written documents
John invested $1,000 in a risky investment and Bill invested $1,000 in a less risky investment. One
year later, Bill's investment is worth $1,030. Which of the following statements is MOST correct? A) John's investment must be worth more than $1,030 because of the risk-return trade-off, given that John's investment was more risky. B) If John's investment is worth less than $1,030, then John was irrational to invest in the risky project. C) If John's investment is worth more than $1,030, then Bill was irrational to invest in the less risky investment. D) The worth of John's investment cannot be determined with the information given.