Exam 23: A: Managing Risk in the Small Business

Match the term with its definition. Some terms may not be used. -A loss arising from an inability to carry on normal operations due to a direct loss of property

Match the term with its definition. Some terms may not be used. -A comprehensive limit on annual expenses should a number of employees reach the firm's per-employee limit on self-funding for medical claims

Which term describes land and anything physically attached to the land, such as buildings?

Wrongful acts or omissions for which an injured party can take legal action against the wrongdoer to seek monetary damages are called contractual liability.

Matchteh term with its definition. Some terms may not be used. -Ways of coping with risk that are designed to preserve the assets and earning power of a firm

Matchteh term with its definition. Some terms may not be used. -Minimizing potential losses by preventing, avoiding, and/or reducing risk

An insurance agent should provide information in designing an insurance plan; the small business owner will only need to determine the price the company can afford.

Match the term with its definition. Some terms may not be used. -A defect resulting from a dangerous design, even though the product was made according to specifications

Loss prevention is defined as lessening the frequency, severity, or unpredictability of losses.

A small company can protect itself against the death of important personnel by carrying CGL insurance.

Which action is part of the second step of a risk management program analysis?

Which risk type directly affects the employee but indirectly impact the business?

Damage to a building by fire is an example of

Match the term with its definition. Some terms may not be used. -A policy for small businesses that do not qualify for a BOP that combines property insurance, commercial general liability insurance, and crime insurance

Match the term with its definition. Some terms may not be used. -A loss in which physical damage to property reduces its value to the property owner

Driving as safely as possible is an example of loss

A coinsurance provision requires that a property be insured for at least ____ percent of its value.

Match the term with its definition. Some terms may not be used. -Risks that directly affect individual employees but may have an indirect impact on a business as well

Match the term with its definition. Some terms may not be used. -Economic or non-economic damages intended to make the claimant whole by compensating the claimant for any injuries or loss arising from the negligent action

ACV refers to the depreciated value of a property.