Use the Following to Answer the Questions

question 179

Multiple Choice

Use the following to answer the questions.
The State Farm Group includes several companies.Probably the most well-known company in the group is the State Farm Insurance company,the largest auto and home insurer in the United States.State Farm Insurance provides protection for approximately 78 million policies on auto,fire,life,and health services.It is also a leading insurer of homes and autos in Canada.Another company in the State Farm group is the State Farm Bank,which was opened in 2000,beginning State Farm's entry into the financial services field.However,the State Farm Bank is not a traditional bank,in that it has no branch offices and its services are provided through State Farm agents,a call center,the mail,and on the internet.It currently serves over 1.9 million bank accounts.
-Refer to Scenario 17.2.If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective,it could decide to allocate 2 percent of its total annual sales to advertising.However,one problem with this method is that

• A) it makes the bookkeeping too difficult.
• B) it is tied too closely to sales forecasts.
• C) a sales decline leads to an increase in the advertising appropriation.
• D) a drop in sales would cause a drop in the advertising budget.
• E) competitors may have different advertising objectives.

Comprehend the specifics of shareholder classes and the role of shareholder participation in corporate decisions.

Gain insights into corporate mergers, acquisitions, and the disposal of assets under the Model Business Corporation Act (MBCA).

Understand the concept of allele frequency in a population.

Grasp the principles of the Hardy-Weinberg equilibrium, including the conditions required for it to apply and the reasons why it is important for studying genetic variation.

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Definitions:

People

Human beings collectively or considered as members of a community, society, or culture.

Morphemes

The smallest meaningful units of language, such as prefixes, roots, and suffixes.

Zero

A numerical figure representing nothing or the absence of quantity or value.

One

The numeral or figure representing a single unit or an indivisible entity.