Question 1

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

Accepted Answer

A)  Liability 
B)  Personnnel 
C)  Property 
D)  Pure 
A)  Liability 
B)  Personnnel 
C)  Property 
D)  Pure B

Question 2

Match between columns
                        Premises: Coverage for general liability loss exposure
The criminal transfer of funds from a bank account
The typical standard of care, based on what a reasonable or prudent person would have done under similar circumstances
Coverage that provides benefits to a firm upon the death of key personnel
Coverage that reimburses a business for the loss of anticipated income following the interruption of business operations
Risks that directly affect individual employees but may have an indirect impact on a business as well
A policy for small businesses that do not qualify for a BOP that combines property insurance, commercial general lability insurance, and crime insurance
A negligent act that is the clear cause of damages sustained
Coverage that provides benefits to employees injured at work
A business version of a homeowner's policy designed to meet the property and general liability insurance needs of some small business owners

Accepted Answer

The Answer of Business owner's policy and Proximate cause and is...

Question 3

Business interruption insurance covers

Accepted Answer

A)  debts to suppliers. 
B)  shoplifting. 
C)  lost income. 
D)  defective products. 
A)  debts to suppliers. 
B)  shoplifting. 
C)  lost income. 
D)  defective products. C

Question 4

Assume that the physical property of a business is valued at $50,000. The company's commercial property policy contains a coinsurance clause with a stated percentage of 80 percent. The company insures the property for $30,000 (75 percent of the specified minimum). The company incurs a fire loss of $20,000. How much of the loss will the insurance company pay for?

Accepted Answer

A)  $0 
B)  $15,000 
C)  $20,000 
D)  $10,000 
A)  $0 
B)  $15,000 
C)  $20,000 
D)  $10,000

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

Dan bought a $500,000 marina two years ago and obtained $400,000 of property insurance.  Recently economic improvements on the lake has raised the property's value to $550,000 (the good news). But the general store had a fire causing $100,000 worth of damage (the bad news). How much will the insurance company pay to repair the store since Dan has a coinsurance clause in the marina's policy?

Accepted Answer

Under the coinsurance clause, Dan agreed

Question 7

Risk is the possibility of suffering harm or pain.

Accepted Answer

A) True 
 B)False

Question 8

Patrick has a great idea for a new business venture.  Even after conducting research he is not certain whether he can make a go of it.  Patrick is concerned about:

Accepted Answer

A)  risk. 
B)  pure risk. 
C)  business risk. 
D)  market risk. 
A)  risk. 
B)  pure risk. 
C)  business risk. 
D)  market risk.

Question 9

For the most part, the dollar value of employment practice claims ranges from $50,000 to $150,000, with insurance premiums ranging from $12,500 to $17,500.

Accepted Answer

A) True 
 B)False

Question 10

Crime insurance is most critical for a small business when

Accepted Answer

A)  the business has financial controls. 
B)  the firm is struggling. 
C)  the owner has a personal distraction. 
D)  the owner employs family members. 
A)  the business has financial controls. 
B)  the firm is struggling. 
C)  the owner has a personal distraction. 
D)  the owner employs family members.

Question 11

Business interruption insurance is

Accepted Answer

A)  included in a PPO policy. 
B)  may be part of an umbrella liability policy. 
C)  not recognized as important by small business owners. 
D)  part of a CGL no fault coverage plan. 
A)  included in a PPO policy. 
B)  may be part of an umbrella liability policy. 
C)  not recognized as important by small business owners. 
D)  part of a CGL no fault coverage plan.

Question 12

A unique, attractive feature of a BOP is that both real and personal property are valued on

Accepted Answer

A)  an appraised cash value basis. 
B)  a market-adjusted depreciated value basis. 
C)  a replacement-cost basis. 
D)  a proximal-to-value basis. 
A)  an appraised cash value basis. 
B)  a market-adjusted depreciated value basis. 
C)  a replacement-cost basis. 
D)  a proximal-to-value basis.

Question 13

Quentin is getting quotes for insurance on his building.  His agent recommends he purchase enough to cover the ___________________ even though this amount is more than Quentin paid for it.

Accepted Answer

A)  replacement value 
B)  actual cash value 
C)  conisurance value 
D)  minimum value 
A)  replacement value 
B)  actual cash value 
C)  conisurance value 
D)  minimum value

Question 14

The cost to replace or replicate property at today's prices is described by________.

Accepted Answer

A)  real property 
B)  personal property 
C)  replacement value of property 
D)  actual cash value 
A)  real property 
B)  personal property 
C)  replacement value of property 
D)  actual cash value

Question 15

The striking dock workers on the west coast refused to unload the ships carrying merchandise for retail stores.  These stores suffered loss of revenue during the Christmas season, their highest earnings period of the year.  This revenue reduction is ________________ that ___________ covered by insurance.

Accepted Answer

A)  a direct loss, can be 
B)  indirect loss, can be 
C)  direct loss, cannot be 
D)  indirect loss, cannot be 
A)  a direct loss, can be 
B)  indirect loss, can be 
C)  direct loss, cannot be 
D)  indirect loss, cannot be

Question 16

Risk is

Accepted Answer

A)  a chance all entrepreneurs take. 
B)  a probability that adverse conditions will result. 
C)  a possibility of suffering harm or loss. 
D)  usually avoidable. 
A)  a chance all entrepreneurs take. 
B)  a probability that adverse conditions will result. 
C)  a possibility of suffering harm or loss. 
D)  usually avoidable.

Question 17

Commercial general liability insurance covers

Accepted Answer

A)  business interruption expenses. 
B)  injury to customers. 
C)  injury to employees. 
D)  profession liability. 
A)  business interruption expenses. 
B)  injury to customers. 
C)  injury to employees. 
D)  profession liability.

Question 18

Philip leases retail space in a building owned by Roger.  The lease agreement contains a(n) _____________ excusing Roger from responsibility for any financial consequences of Philip's actions.

Accepted Answer

A)  premises liability clause 
B)  indemnification clause 
C)  operations liability clause 
D)  lessor's release of action clause 
A)  premises liability clause 
B)  indemnification clause 
C)  operations liability clause 
D)  lessor's release of action clause

Question 19

Discuss advantages and disadvantages to a company obtaining a BOP policy.

Accepted Answer

A business owner's policy (BOP combines

Question 20

Barney places his new extension ladder on a slippery surface when he leans it against the wall.  He climbs up; the ladder slips out from under him and he falls. Which type of product liability may exist in this situation?

Accepted Answer

A)  Manufacturing since ladder may not have been intended for this use. 
B)  Design since the ladder may not have been made to specifications 
C)  Marketing if the manufacturer did not provide instructions on how to use the ladder. 
D)  There is no liability.  The users assumes all risk in using any type of ladder. 
A)  Manufacturing since ladder may not have been intended for this use. 
B)  Design since the ladder may not have been made to specifications 
C)  Marketing if the manufacturer did not provide instructions on how to use the ladder. 
D)  There is no liability.  The users assumes all risk in using any type of ladder.

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

Business interruption insurance covers

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.

Risk is the possibility of suffering harm or pain.

Patrick has a great idea for a new business venture. Even after conducting research he is not certain whether he can make a go of it. Patrick is concerned about:

For the most part, the dollar value of employment practice claims ranges from $50,000 to $150,000, with insurance premiums ranging from $12,500 to $17,500.

Crime insurance is most critical for a small business when

Business interruption insurance is

A unique, attractive feature of a BOP is that both real and personal property are valued on

Quentin is getting quotes for insurance on his building. His agent recommends he purchase enough to cover the ___________________ even though this amount is more than Quentin paid for it.

The cost to replace or replicate property at today's prices is described by________.

The striking dock workers on the west coast refused to unload the ships carrying merchandise for retail stores. These stores suffered loss of revenue during the Christmas season, their highest earnings period of the year. This revenue reduction is ______ that _ covered by insurance.

Risk is

Commercial general liability insurance covers

Philip leases retail space in a building owned by Roger. The lease agreement contains a(n) _____________ excusing Roger from responsibility for any financial consequences of Philip's actions.

Discuss advantages and disadvantages to a company obtaining a BOP policy.

Barney places his new extension ladder on a slippery surface when he leans it against the wall. He climbs up; the ladder slips out from under him and he falls. Which type of product liability may exist in this situation?

The Entrepreneurial Life

Integrity Ethics and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan Visualizing the Dream

The Marketing Plan

The Organizational Plan Teams Legal Structures Alliances and Directors

The Location Plan

Understanding a Firm S Financial Statements

Forecasting Financial Requirements

A Firm S Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firm S Assets

Filters

Exam 23: Managing Risk

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

Business interruption insurance covers

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.

Risk is the possibility of suffering harm or pain.

Patrick has a great idea for a new business venture. Even after conducting research he is not certain whether he can make a go of it. Patrick is concerned about:

For the most part, the dollar value of employment practice claims ranges from $50,000 to $150,000, with insurance premiums ranging from $12,500 to $17,500.

Crime insurance is most critical for a small business when

Business interruption insurance is

A unique, attractive feature of a BOP is that both real and personal property are valued on

Quentin is getting quotes for insurance on his building. His agent recommends he purchase enough to cover the ___________________ even though this amount is more than Quentin paid for it.

The cost to replace or replicate property at today's prices is described by________.

Risk is

Commercial general liability insurance covers

Philip leases retail space in a building owned by Roger. The lease agreement contains a(n) _____________ excusing Roger from responsibility for any financial consequences of Philip's actions.

Discuss advantages and disadvantages to a company obtaining a BOP policy.

Barney places his new extension ladder on a slippery surface when he leans it against the wall. He climbs up; the ladder slips out from under him and he falls. Which type of product liability may exist in this situation?

The Entrepreneurial Life

Integrity Ethics and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan Visualizing the Dream

The Marketing Plan

The Organizational Plan Teams Legal Structures Alliances and Directors

The Location Plan

Understanding a Firm S Financial Statements

Forecasting Financial Requirements

A Firm S Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firm S Assets

Filters