Angus Is a Bus Driver for a Tour Bus Company

question 46

Multiple Choice

Angus is a bus driver for a tour bus company.He's had an excellent driving record for the 15 years that he's been working for the company.Last year Angus was on medical leave for 8 weeks for a back injury that has left him in chronic pain.Recently,Angus' co-workers have noticed that he has been behaving erratically and has been falling asleep in the employee lounge.If Angus has an accident while driving one of the tour buses because of the effects of his prescription pain medication and passengers are injured,the company might be liable for

• A) failure to conduct a thorough background check on Angus.
• B) negligent hiring.
• C) criminal negligence.
• D) negligent retention.

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Definitions:

Liquidity Premiums

Additional yield that investors demand for holding securities that are not easily sold at their fair market value without a significant price concession.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date at a predetermined call price.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Reinvestment Rate Risk

Reinvestment Rate Risk is the risk that the returns from reinvesting cash flows will be lower than initially anticipated due to changes in interest rates.