Question

FranticHouse Partners, L.L.C., does home remodeling and repair. The firm does not accept jobs that require the installation of slate or copper roofing because these materials often require costly post-installation services. The firm's risk exposure to costly post-installation services is

A) reduced.
B) shared.
C) avoided.
D) accepted.

Answer 1

FranticHouse Partners, L.L.C avoids risk exposure by not accepting jobs requiring slate or copper roofing to prevent costly post-installation services.

Step-by-step explanation:

The firm's risk exposure to costly post-installation services is avoided. By choosing not to accept jobs that require the installation of slate or copper roofing, FranticHouse Partners, L.L.C., is making a strategic decision to avoid the risk associated with the potential high costs of post-installation services that these materials might necessitate. Rather than sharing, accepting, or reducing the risk, they have opted to eliminate the risk exposure entirely for this specific area of their operations.