Which of the following is a disadvantage of the brand management system?
A) a tendency to avoid price differentiation
B) too much focus on the supplementary and complementary roles of all product lines
C) a tendency to overemphasize short-term gains in sales
D) an interdependent structure that can undermine personal responsibility
E) too much focus on establishing brand equity
C
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Luis has 3 individual health insurance policies and is concerned that the benefits may overlap. What will happen in the event he makes a claim for coverage under all 3 policies?
A) If 1 insurer covers the risk, it will pay the claim and any premiums that apply to any excess will be returned to Luis. B) If 2 or more insurers cover the same risk, there is a presumption of fraud. All policies will be canceled and all premiums will be refunded. C) If 2 insurers cover the same risk, they will divide claims equally and refund any excess premiums to Luis. D) If the claim is made after the policies have been in force for at least 2 years, the insurer is obligated to pay all claims and pay any excess premiums directly to Luis or his beneficiary, regardless of the number of insurers covering the risk.
Which of the following is a characteristic of unsystematic risk?
A) Affects one or a few firms B) Includes events like oil price shocks C) Cannot be reduced though diversification D) Is the only risk that investors in the market portfolio worry about