Giant Motor Car Co.is in the business of automobile manufacturing and parts assembly.It uses a just-in-time inventory system that greatly reduces inventory costs.The only difficulty,however,is that it leaves Giant somewhat vulnerable to supply stoppages.Giant has only 48 hours of raw materials inventory at any given time.
A) Giant has an insurable interest in maintaining inventory supply.
B) Giant could obtain insurance against a strike at the plant of a parts supplier.
C) Giant could recover costs and consequential damages such as downtime and lost profits resulting from employee pilfering under its business insurance contract.
D) Giant could obtain life insurance for its inventory scheduler.
E) a,b,and d.
Correct Answer:
Verified
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