The Local Franchise of a National Bar and Grill Chain

question 45

Multiple Choice

The local franchise of a national bar and grill chain continued to serve a drunk customer.The drunk customer tried to drive home.He hit and killed two people who were riding bicycles.The representatives of those who were killed filed a lawsuit against the national chain.As jury awards in the area where the incident occurred are high,insurers selling liquor liability insurance refused to issue new coverage until the case was resolved.Because no admitted insurers sell the coverage,liquor liability insurance in this case is considered a(n)

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

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Definitions:

Subsidiary Human Capital

the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to a subsidiary organization.

Transnational Strategy

A business approach where a company seeks to achieve global reach, efficiency, and local responsiveness simultaneously.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, often due to unique resources, capabilities, or strategies.

Strategic Challenges

Difficulties or obstacles encountered in planning and executing strategies to achieve long-term goals.