The Sailors Who Survived the Capsizing of the Aleutian Enterprise

question 106

Multiple Choice

The sailors who survived the capsizing of the Aleutian Enterprise filed a lawsuit against the company that owned the ship. They claimed that they suffered psychological harm (e.g., posttraumatic stress disorder [PTSD]) as a result of this event. What was the outcome of this case?

• A)The court did not compensate them because they were not hurt physically.
• B)They were compensated for their psychological injuries because they had been in the "zone of danger."
• C)The court did not compensate them because they were not close enough to the "zone of danger" to be eligible for compensation.
• D)They were compensated because PTSD was diagnosed in all of the sailors by experts hired by both sides.

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Definitions:

Economies of Scope

Cost advantages that a business obtains due to a broader range of operations or production levels.

Horizontal Integration

A strategy where a company acquires or merges with other companies at the same stage of production in its industry, seeking to increase market share.

Market Diversification

The strategy of entering into new markets or creating new products to reduce reliance on a single market or product line.

Synergy

The combined effect of two or more individuals, entities, or factors that is greater than the sum of their separate effects.