The Bar at the Local Franchise of a National Chain

question 29

Multiple Choice

The bar at the local franchise of a national chain continued to serve a drunk customer.The customer left the bar and tried to drive home.The drunk driver hit and killed three people who were riding bicycles.The legal representatives of those who were killed filed a multi-million dollar lawsuit against the national chain.As jury awards in the city where the incident occurred tend to be high,insurers marketing liquor liability insurance refused to issue new coverage until the case was resolved.Because no admitted insurers were willing to offer the coverage,liquor liability in this case is considered a(n)

• A)residual line.
• B)mandatory coverage.
• C)orphan policy.
• D)surplus line.

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Definitions:

Organizational Strategy

A plan devised by an organization to achieve long-term goals and sustain competitive advantage.

Stopgap Hiring

A temporary recruitment solution to fill urgent vacancies while looking for permanent staff.

Strategic Competitive Edge

The unique advantages that allow an organization to outperform its competitors, often through superior resources, positioning, or capabilities.

Strategic Planning

A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives, and a sequence of steps to achieve them.