Employment Practices Liability Insurance

question 43

Multiple Choice

Employment practices liability insurance

• A) has been declining in usage because of increased training of supervisors and better designed disciplinary practices.
• B) is priced based on the number of employees.
• C) requires an audit of the company's HR polices and practices.
• D) represents the failure of HR management to properly enforce good practices and legal behavior by management.

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Definitions:

Service

A non-tangible good provided to consumers or businesses, such as consulting, banking, or cleaning, which can't be stored or physically possessed.

Fee

A charge for services provided or the right to participate in an activity or access certain benefits.

Unearned Rent Revenue

Liability account that reflects payments received for rent before the rental period has occurred; it is recognized as revenue over time as the service is provided.

Rent Expense

The cost incurred by a business to utilize property as an office, manufacturing space, storage, or retail location.