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CIMA Strategic P3 Question # 46 Topic 5 Discussion

P3 Exam Topic 5 Question 46 Discussion:
Question #: 46
Topic #: 5

L is a specialist deep sea diving company The company specialises in challenging tasks that are often rejected by other companies as being too risky Most assignments are difficult and some are very dangerous L has very experienced divers who are highly trained and are safety conscious In spite of the dangerous work, L has an excellent success rate and is highly sought after L charges very high fees for its work Despite L's precautions, the likelihood of accidents is high and the consequences are also high L has an excellent insurance which has always been very expensive but the price has just been increased by 40%

Which of the following is correct?


A.

L should cease trading


B.

L should pay the very high insurance premiums demanded by its insurance company


C.

L should diversify into low risk diving contract s.


D.

L should stop accepting these risky contracts.


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