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What type of strategy could be best when an organization has excess production capacity?
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What is the key difference between an umbrella policy and excess liability policy?
similar - umbrella usually a personal lines excess coverage. excess liability policy could be anything. Both are designed to provide another layer of protection over and above the underlying policy(ies)
What are the disadvantages of excess of loss reinsurance?
1. It is limited and you have to declare how many free reinstatements you buy. For example when reinsuring property line you can buy coverage of USD 99.000.000 in excess of USD 1.000.000 with one free reinstatement. If three losses of USD 100.000.000 happen during a year only first two are covered if you do not buy additional coverage. Also after two losses that exhaust your excess of loss capacity buying the third reinstatement would be extremely expensive. 2. You have to pay so called MinDep - minimum deposit premium. It is calculated as a certain percentage of estimated premium income multipled by the rate. If your actual premium income is lower than this percentage of declared premium income you pay for empty coverage - the one you do not actually need. 3. Excess of loss only covers losses excessing some amount while proportionate reinsurance (quota share, surplus) covers certain share of every, even the smallest one, indemnity paid from the insurance that falls into the treaty.
What are the advantages of excess of loss reinsurance?
- Simplified accounting procedures - Low administrative costs
What if the products completed operations aggregate amount is insufficient?
You can purchase an Excess/Umbrella policy to increase your liability limits.
How do businesses manage excess inventory?
With excess inventory, it is possible to return it back to the supplier for a fee. However, if a business still wants to attempt to make a profit, many businesses will put the inventory up for sale or clearance. This usually occurs at the end of a selling season when new inventory is coming in.
Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
Which basic production strategy will build inventory and avoid the costs of excess capacity
Why don't oil refineries operate at full capacity?
In the early 2000's there was almost no excess global refining capacity. The reason for the lack of excess capacity was that the industry had not added any capacity since the 70's. The lack of added capacity was due to the fact that since the 70's a huge amount of excess capacity had existed. It took almost 20 years for demand to catch up with excess capacity and the refining industry suffered low profits from the 1970's until 2002. When the demand caught up new refineries were built and they are beginning to come on line and are the reason for the increase in excess capacity. The capacity of a refinery to produce oil is increased with new innovations in the refining process and the removal of bottle necks within the system. Excess capacity is built into refineries to meet future demand. Assuming that oil refineries don't operate at full capacity to make more money and drive up prices is a false assumption. History shows that the profit margin for a refinery decreases as excess capacity increases. The global oil industry's growing challenges to increase crude production to meet demand and fill excess capacity is a much more likely source of high prices.
I should also add th?
I should also add that the number one strategy to prevent more damage to your lungs( including excess mucus production) is to quit smoking.
How did mass production and over production bring about stock market crash?
This blogger carefully explains excess capacity, market saturation, and over-production of automobiles leading to an irreversible $500B debt and a de-valued commodity. http://castellari.blogspot.com/2008/11/bail-or-not.html
What does it mean if a firm has excess capacity?
a firm has excess capacity if it produces below its efficient scale, whcih is the quantity at which total cost is a minimum.
What was most directly a result of excess of excess crop production?
Investment.Apex.
What are the symptoms of an allergic reaction to titanium?
externally. redness and heating of contact area. internally Excess histamine production What does excess histamine production mean? And how can it be tested for?
Under which market condition do firms have excess capacity?
duopoly
Is excess a noun or adj?
The word 'excess' is both a noun and an adjective. Examples:Noun: We have an excess of twelve students over capacity for this bus.Adjective: Please call for an additional bus for the excess students.
What is mean by capacity cushion in terms of operation management?
Capacity cushion, which is an amount of capacity in excess of expected demand when there is some uncertainty about demand.
Which situation best illustrate the concept excess demand?
Currently, due to rumors of gun control legislation, there is an excess demand for high capacity magazines. You can see the results of excess demand by searching for high capacity magazines for sale. Every venue that offers them for sale has nothing in stock. Places that do have them in stock are asking extraordinary prices for them. Therefore, the example of excess demand of high capacity magazines illustrates that excess demand causes scarcity of product and inflation of price. Conversely, excess supply will likely cause decreased prices.
What was most directly a result of excess production of crops?
Investment.Apex.
