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:

Time Frames

Time frames are specified periods during which certain actions are to be undertaken or events are expected to occur.