A Store Manager of a Large Grocery Chain Makes a Verbal

question 25

Multiple Choice

A store manager of a large grocery chain makes a verbal offer to compensate a customer for a serious hand injury that requires medical attention.Even though the store manager's offer is refused,he is seriously reprimanded by the vice president of the legal risk department.What was the vice president's most significant concern?

• A) to pay as small a settlement as possible
• B) to clarify the situation before entering negotiations
• C) reaching a fair and acceptable outcome
• D) negotiating could imperil risk insurance coverage

---

Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business such as rent, utilities, and salaries.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and properties.

Incremental Sales

The additional revenue generated from a specific sales activity or marketing effort beyond base sales.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct labor and materials.