Question

What are the strategic implications of a competitively relevant weakness of ongoing legal claims that could prove a threat to financial viability

Answer 1

Complete Question:

What are the strategic implications of a competitively relevant weakness of ongoing legal claims that could prove to be a threat to financial viability?

A. It would have no strategic relevance because legal claims are a matter of insurance coverage.

B. It demonstrates an absence of of competence amongt healthcare executives.

C. Settlements against the company could result in financial consequences.

D. An appropriate strategic response is to move operations generating legal claims to a offshore location.

Answer:

Option C. Settlements against the company could result in financial consequences.

Explanation:

All the forms of legal claims might be settled in court with financial consequences and as a result the company will also bear reputational damage due to its noncomplaince with the legal requirements. The financial consequence can have serious impact on the business operations. These implication of legal claims are of strategic importance. Hence Option C is correct.

Option A is incorrect because not all the legal claims are insured.

Option B is incorrect because legal claims can be of an accident at work place and this doesn't mean that the executive are incompetent.

Option D is incorrect because it is not the solution to move operations that are generating legal claims because the shift might be very costly to the company.