XYZ,IncWould Suffer Serious Financial Consequences If Either of Its Two

question 38

Multiple Choice

XYZ,Inc.would suffer serious financial consequences if either of its two major customers were shut down and could not purchase XYZ products.Which of the following types of consequential loss protection would provide protection against this exposure?

• A)leasehold interest
• B)extra expense
• C)marine insurance
• D)business income from dependent properties

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Definitions:

Duopoly

An oligopoly consisting of only two firms.

Two Firms

Refers to a market scenario dominated by a duopoly, where two companies control the majority of the market share.

Industry

A sector of the economy made up of manufacturing, production, or services in a similar area of business, contributing to the production of goods or services.

Collusion

Collusion is a non-competitive, secret, and sometimes illegal agreement between competitors to manipulate market conditions by coordinating prices, production, or marketing strategies.