Which of the Following Is an Advantage of Converting from a Mutual

question 83

Multiple Choice

Which of the following is an advantage of converting from a mutual insurance company to a stockholder-controlled company?

• A)Publicly held companies have access to equity markets for additional capital for future business expansion.
• B)Mutual organizations are subject to higher regulatory standards than public companies.
• C)Ability to offer more insurance products than those allowed under mutual ownership.
• D)Publicly held insurance companies can convert to federal charters but mutual organizations cannot.
• E)Mutual organizations can only underwrite policies in the state in which they are chartered while publicly held organizations can expand nationwide.

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Definitions:

Institutional Adaptation

The process by which organizations adjust and change to meet the demands of their external environment or internal needs.

Internal Integration

The process of ensuring that different parts of an organization work together smoothly and effectively towards common goals.

External Adaptation

The process by which an organization or group adjusts and responds to changes in the external environment to survive and thrive.

Systematic Integration

The organized and methodical incorporation of various elements or components into a cohesive whole.