To Prepare for the Possible Unexpected Loss of a Key

question 41

Multiple Choice

To prepare for the possible unexpected loss of a key employee like the CEO or CFO, it is a good idea to

• A) purchase key-person insurance.
• B) prepare a harvest and exit plan.
• C) purchase business liability insurance.
• D) develop a buffer strategy.
• E) prepare a business continuity plan.

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Definitions:

Lower Control Limit

A statistic used in process control charts to signify the lower threshold below which a process is considered to be out of control.

Defect Rate

The proportion of manufactured items that do not meet the prescribed quality standards.

Control Chart Limits

the pre-determined upper and lower boundaries on a control chart within which a process is considered to be in control and performing as expected.

P-chart

A type of control chart used in statistical quality control to monitor the proportion of defective units in a process.