All of the Following Statements About Business Objectives in Designing

question 14

Multiple Choice

All of the following statements about business objectives in designing a rating system are true EXCEPT

• A)The rating system should encourage loss control activities.
• B)The rating system should be independent of long-run changes in economic conditions.
• C)The rating system should be simple to understand.
• D)The rating system should be stable over short periods so that consumer satisfaction can be maintained.

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Definitions:

Immediate Benefits

Advantages or gains that can be realized in the near term without significant delay.

Distant Future

A period of time that is significantly far ahead from the present moment.

Logrolling

In politics, the practice of exchanging favors, especially in legislative bodies, by reciprocal voting for each other's proposed legislation.

Special Interest Groups

Organizations that advocate for the particular interests of their members, often in political and policy-making contexts.