The Difficulties Associated with Private Political Risk Insurance Include All

question 28

Multiple Choice

The difficulties associated with private political risk insurance include all of the following except:

• A) it is difficult to obtain.
• B) it is very costly.
• C) the approval process is slower than with public insurance agencies.
• D) the terms of many private political risk policies are limited to a very short period of time.

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Definitions:

Joint Costs

Costs incurred in the process of producing two or more products simultaneously up to the point of separation.

Split-off Point

The stage in the manufacturing process where joint products are recognizable as separate products and can be individually processed further or sold.

Split-off Point

The stage in a production process where multiple products become individually identifiable and their costs can be separately assigned.

Outsourcing

The practice of hiring external firms to handle work normally performed within a company, often to cut costs or focus on core capabilities.