Deck 21: Appindex

Question 1

What are the four general requirements of insurability?

Answer 1

The four general requirements of insurability are explained below.
Accidental Losses
The possible loss must only be accidental, not certain. The insured should not have any control on the event insured. Claiming insurance for a stolen vehicle is valid only if the theft is not a consequence of any negligence on part of the owner.
Definite Losses
It is important that the loss is substantial and measurable. It should be possible to determine the place, time, and the amount of loss that occurred.
Losses for Similar Mass Population
A large number of similar individuals or organizations must face the threat. It would be possible for the insurance companies to collect data on the basis of frequency and severity of damage due to a particular threat.
Small Possibility of Catastrophic Losses
There must be a low likely potential of catastrophic loss. Only a small percentage of people would be likely to suffer loss at one point of time. To meet very large losses, there must be large contribution made to the insurance companies. For insurance companies to make profits, the amounts they pay to meet the claims should be less than the premiums received by the customers.

Question 2

What steps can you take to balance the need for relevant, timely information with the need to protect your productivity?

Answer 2

Following steps can be taken for balancing the requirement of timely information with protection of productivity:
1) Not updating all the software but making judicious update as per requirement to control overload of information.
2) Checking the usefulness and source of application before updating it.
3) Keeping a check on the software required for every process and putting bars on browsing and installation of useless sites and software.
4) Providing training for guiding the employees in application of tools for improving data management.

Question 3

If you have money to invest but are worried that the stock market could fall soon, is it wise to keep all your investment funds in cash instead? Why or why not?

Answer 3

If a person have sufficient money to invest and he is worried regarding the fact that market would be down after some time then he should understand his current requirement. It would help him to take better decision. If the person requires early returns or he is looking for short term investments then he should prefer holding cash, because in case of market recession, he will not face any further losses. It would also help him to avoid short-term volatility in stock market.
On the other hand, if the person is looking for long term investments then he should keep the money in stock market. Fall in stock price would only cause a "paper loss" to the person for short duration. In long run, turnaround in the market would be helpful to recover the losses and gain profits.

Question 4

What are the three steps to controlling risk?

Question 5

Why would a firm invest in an expert system if it already employs the experts whose knowledge and experience would be used to develop the system's decision support capabilities?

Question 6

Why is it important to understand your risk tolerance before you start investing?

Question 7

What are the three types of U.S. laws, and how do they differ from one another? What additional laws must global companies consider?

Question 8

What is the difference between workers' compensation insurance and disability income insurance?

Question 9

Why is new information technology sometimes considered both a benefit and a curse?

Question 10

What is the difference between negligence and intentional torts?

Question 11

How do insurance companies calculate their premiums?

Question 12

Ethical Considerations. Should employees be allowed to use company-owned information technologies for personal use during work hours? Why or why not?

Question 13

What are the seven elements of a valid contract?

Question 14

Is self-insurance the same as going without insurance? Why or why not?

Question 15

Would companies be successful at simply banning the use of personal devices such as smartphones at work in order to protect the integrity of company networks? Why or why not?

Question 16

How can companies protect their intellectual property?

Question 17

Why is it a good idea to purchase business interruption insurance?

Question 18

When trying to guard against information overload, what steps can you take to decide whether a particular piece or source of information is worth paying attention to?

Question 19

What criteria must an instrument meet to be negotiable?

Question 20

Does every worker or consumer need life insurance? Why or why not?

Question 21

What does the time value of money mean?

Question 22

What is precedent, and how does it affect common law?

Question 23

Ethical Considerations. Life insurance can be one of the most complex purchases a consumer ever makes. It is also an expensive purchase and often sold by salespeople working on commission, which means they are motivated to make the sale. Whose responsibility is it to make sure purchasers understand the options available to them and understand all the details and ramifications of the specific policies they choose? Why?

Question 24

What is compounding?

Question 25

What does the concept of strict product liability mean to businesses?

Question 26

Should employers be required to provide some level of health insurance to their employees? If not, how should employees get coverage?

Question 27

What is the major advantage of using a fee-only financial planner?

Question 28

Why is agency important to business?

Question 29

Is the chance that a new product might fail in the marketplace an insurable risk? Why or why not?

Question 30

What is credit counseling?

Question 31

How can intellectual property rights help spur innovation?

Question 32

What is the difference between data and information?

Question 33

What is the difference between a tax deduction and a tax credit?

Question 34

Ethical Considerations. Should products that can be used in the commission of a crime be declared illegal? For example, DVD burners can be used to make illegal copies of movies pirated from the Internet. Why wouldn't the government simply ban such devices?

Question 35

What is the key difference between a management information system and a decision support system?

Question 36

Should you borrow at any cost to get through college? Explain your answer.

Question 37

Should individual employees or managers of a corporation be penalized (through fines or imprisonment) if they are responsible when their companies commit illegal acts? For example, if a company is fined for polluting, should the people who authorized and carried out the pollution be fined as well? Why or why not?

Question 38

What is information overload?

Question 39

What are the risks of relying on credit cards for living expenses while in college?

Question 40

Would musicians, artists, writers, and inventors continue to create if they had no patent or copyright protection? Explain your answer.

Question 41

What is the purpose of data mining?

Question 42

Why is it essential to keep a close eye on fixed expenses?

Question 43

What is the difference between pure risk and speculative risk?

Question 44

How do operational information systems differ from managerial systems?

Question 45

Why do you need to be able to explain your value to potential employers?

Question 46

What is risk management?

Question 47

Why do social media technologies present a potential information security threat?

Question 48

Ethical Considerations. Is it unethical for lenders to get students to sign up for loans that the students may not fully understand? Why or why not?