Author Question: Discount Department Stores is a national retail chain. The company had one large, central warehouse. ... (Read 262 times)

piesebel · **on:** Jul 11, 2018

Discount Department Stores is a national retail chain. The company had one large, central warehouse.

At the suggestion of the risk manager, the company decided to build four smaller regional warehouses so that a loss at the central warehouse would not be a catastrophic blow to the company's distribution system. Splitting the inventory between four regional warehouses illustrates which risk management technique?
A) duplication
B) risk transfer
C) separation
D) risk avoidance

Question 2

Which of the following statements concerning the selection of risk management techniques and insurance market conditions is (are) true?

I. It's easier to purchase affordable insurance during a soft market than during a hard market.
II. Retention is used more during a soft market than during a hard market.
A) I only
B) II only
C) both I and II
D) neither I nor II