What Is the Primary Disadvantage of Employing a Selective Specialization

question 114

Multiple Choice

What is the primary disadvantage of employing a selective specialization strategy?

• A)Gaining market distribution will be costly.
• B)The organization may be spread too thin.
• C)The organization achieves neither marketing nor manufacturing synergies.
• D)R&D-manufacturing have the difficulty of producing multiple new lines.
• E)It is too risky for a company to "put all its eggs in one basket."

Grasp the requirements for an insurable interest and how it impacts the ability to procure and maintain insurance coverage.

Understand the role of arbitration clauses in insurance policy disputes and how disputes can be resolved without court intervention.

Recognize different types of insurance coverage (e.g., casualty, liability, property, life) and the specific risks they address.

Understand the concepts of appraisals, binders, and conditions affecting the validity of insurance policies, including misrepresentations and non-disclosure.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income or loss over a specific period, indicating its financial performance.

Items Reported

Specific financial data points or transaction details disclosed in a company’s financial statements.

Accounting

Accounting is the systematic process of recording, measuring, and communicating financial information about an entity, facilitating decision making and financial management.

Credit Balance

The amount of money a business owes to its creditors, represented as a liability on the balance sheet.