In the Case of a Retail Business Dependent on Drive-In

question 164

Multiple Choice

In the case of a retail business dependent on drive-in customers, the major cost disadvantage independent of scale would be

• A) favorable locations are not available.
• B) other competitors have proprietary product technology.
• C) access to raw materials is difficult.
• D) other competitors have government subsidies.

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Definitions:

Effective Date

The date when an agreement, policy, or contract becomes legally enforceable.

Insurance Policy

A contract between an insurer and a policyholder that provides compensation for specified losses in exchange for premiums paid.

Capitation

The health care provider is paid a fixed amount per member per month for each patient who is a member of a particular insurance organization regardless of whether services were provided.

Precertification

Refers to obtaining plan approval for services prior to the patient receiving them; refers to seeking approval for a treatment (surgery, hospitalization, diagnostic test) under the patient’s insurance contract.