NIS+ problems

We are lumbered with using NIS+, and I have some questions regarding its use.

1 in a senario with 1 master 3 slaves, if the slaves all die the master will also fail ? There is some thing I read which states that NIS+ needs n/2 to function can anyone confirm / deny this ?

Also in the event that NIS+ fails, then surely the local /etc/password system would kick in, is that correct, what about other files under NIS+ control like /etc/hosts ?

Any thoughts are welcomed.