When the Size of the Potential Loss Is Small, Most

question 20

Multiple Choice

When the size of the potential loss is small, most people will

• A)insure because insurance costs less than the expected loss.
• B)self-insure because they can afford it and the expected loss less than the insurance premium.
• C)self-insure because the expected loss cannot be calculated.
• D)self-insure because insurance companies do not like to insure for small losses.

Illustrate the effects of the principal's control over the agent and the significance of independent contractor status.

Comprehend the procedural and legal requirements for agency agreements, including when they must be in writing.

Recognize the significance of agency in international business settings.

Understand the legal implications of breaching agency contract terms, especially concerning confidentiality and duty of loyalty.

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Definitions:

Lending Workers

The practice of temporarily assigning employees to work for another organization or within a different part of the same organization.

Extending Reductions

The process of increasing the scope or duration of cost-cutting or resource-saving measures.

Deep Water Exploration

The process of investigating and exploring the seabed and sub-sea layers in oceanic environments at great depths for resources or scientific research.

Company Profits

The financial gain that a company obtains after deducting all its expenses from its total revenues.