4. Your company is a medium drug manufacturer established several years ago and is developing steadily....

90.2K

Verified Solution

Question

General Management

4. Your company is a medium drug manufacturer establishedseveral years ago and is developing steadily. The board ofdirectors is planning a huge investment in a new drug’s R&D,which may need financial support from local banks. The governmentis considering increasing income tax rate for all drug industry inthe country. Since there has been little claim against yourinsurance company in the past three years, the board of directorssuggest that the policy need not be renewed when it expires by theend of this year. If you are the risk manager, what would be yoursuggestion and/or arguments regarding the risk financing plan foryour company?

Answer & Explanation Solved by verified expert

3.8 Ratings (428 Votes)

As the risk manager I strongly recommend the company to renew the insurance policy for the business We must all consider the fact that a lapsed policy means that the company is at risk though there have been very few claims in the past 3 years The business environment is an See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member