You drink 19 beers to celebrate the end of your risk management and insurance class, and then have an accident while driving home from the bar. The police charge you with drunk driving, and with hitting another automobile from behind
What will your automobile insurer do when you file a claim for the damage to your car, and what will it do when the injured people in the other car file claims to have their bodily injuries paid for?
A) Nothing. The insurer does not have to pay any of these claims.
B) The insurer will pay all the claims.
C) The insurer will pay the liability claims, but not the damages to your car, because of the fact that you were drunk.
D) The insurer will say, "Who are you? Nobody here remembers selling you a policy."
B
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Differences in foreign markets such as culture, language, and customs can represent significant management risks when firms enter foreign markets.
Answer the following statement true (T) or false (F)
Strategic decision are subordinate to tactical planning decisions
Indicate whether the statement is true or false
Sally's Salon began operations on January 1 of the current year with an investment by Sally of $21,155 in exchange for common stock. Based on the following trial balance prepare an income statement, statement of retained earnings, and a balance sheet. There were no additional common stock issuances during the year. Sally's SalonTrial BalanceDecember 31Cash$ 6,500?Accounts receivable475?Beauty supplies2,500?Beauty shop equipment17,000?Accounts payable?$ 745Common Stock?21,155Dividends36,000?Revenue earned?72,000Beauty supplies expense3,425?Rent expense6,000?Wages expense22,000?Totals$93,900$93,900
What will be an ideal response?
Because the timing of a strategic move can be just as important as the choice of move to make, a company's best option with respect to timing of an action is
A. to be the last mover-playing catch-up is usually fairly easy and almost always is much cheaper than any other option. B. to be a fast follower. C. to be the first mover. D. to be a late mover (because it is cheaper and easier to imitate the successful moves of the leaders and moving late allows a company to avoid the mistakes and costs associated with trying to be a pioneer-first-mover disadvantages usually overwhelm first-mover advantages). E. to carefully weigh the first-mover advantages against the first-mover disadvantages and act accordingly.