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:

Compromising

A conflict resolution strategy where both parties give up something of value to come to a mutually acceptable agreement.

Avoiding

A conflict management style where individuals ignore or withdraw from a situation to evade disagreements or confrontations.

Empathetic

Exhibiting the ability to understand and share the feelings of others.

High-High Style Leader

A leadership approach characterized by high levels of consideration for individuals and a high emphasis on task accomplishment.