Exam 23: Managing Risk

Brenda expects there will be uncertainty regarding the outcome of her business decisions. The final result of those decisions will not be known until she has identified the investment opportunity, developed strategies, and __________ to her business.

(Multiple Choice)

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Question 41

Indemnification clauses should be reviewed by an insurance agent or broker to limit liabilities to a small business.

(True/False)

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Question 42

Mistakes that an employee makes in assembling a product for a customer could be a(n)

(Multiple Choice)

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Question 43

Since Melissa is starting a day care center in her home, what business risks should be insured? How can an insurance agent assist in the insurance evaluation process?

(Essay)

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Question 44

Loss reduction is defined as preventing losses from ever happening .

(True/False)

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Question 45

Self-insurance requires

(Multiple Choice)

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Question 46

To evaluate an insurance program, which question should be answered first?

(Multiple Choice)

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Question 47

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

(Multiple Choice)

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Question 48

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

(Multiple Choice)

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Question 49

A carton of eggs broke onto the floor in the dairy section, making the floor slippery. Little Johnny slipped, fell, and hit his head on the floor, causing a cut and mild concussion. The grocery store incurs _________________ liability for his injuries.

(Multiple Choice)

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Question 50

Match the term with its definition. Some terms may not be used.

Insurance that provides a healthy partner the cash to buy out a partner who becomes ill

Loss reduction

A comprehensive limit on annual expenses should a number of employees reach the firm's per-employee limit on self-funding for medical claims

Indirect loss

A loss in which physical damage to property reduces its value to the property owner

Loss prevention

Correct Answer:

Verified

Insurance that provides a healthy partner the cash to buy out a partner who becomes ill

A comprehensive limit on annual expenses should a number of employees reach the firm's per-employee limit on self-funding for medical claims

A loss in which physical damage to property reduces its value to the property owner

Lessening the frequency, severity, or unpredictability of potential losses

Choosing not to engage in hazardous activities

A loss arising from an inability to carry on normal operations due to a direct loss of property

An insurance term that refers to the depreciated value of property

A firm's per-employee limit on self-funding for medical claims

The cost of replacing personal property and rebuilding real property at today's prices

Keeping a loss from happening

(Matching)

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Question 51

Driving as safely as possible is an example of loss

(Multiple Choice)

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Question 52

Pure risk refers to a situation where only loss or no loss can occur-there is no potential gain.

(True/False)

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Question 53

Harold's ownership of a moving van for use in his business represents which form of risk?

(Multiple Choice)

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Question 54

Assume a contract exists between Mr. Jones, a college professor, and his student, Mr. Smith. Jones provides a syllabus, instruction, tutoring, and assessments of learning but Smith fails the class. Which of the following elements is absent in this case?

(Multiple Choice)

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Question 55

Pain, suffering, mental anguish and loss of physical abilities are included in which type of damages in a tort case?

(Multiple Choice)

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Question 56

Funds transfer fraud provides coverage primarily against employee dishonesty.

(True/False)

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Question 57

A "prudent person" is also known as:

(Multiple Choice)

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Question 58

Disability buyout insurance

(Multiple Choice)

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Question 59

Richard must carry workers' compensation insurance to fulfill his ________________ obligation.

(Multiple Choice)

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Question 60

Showing 41 - 60 of 97

Exam 23: Managing Risk

Brenda expects there will be uncertainty regarding the outcome of her business decisions. The final result of those decisions will not be known until she has identified the investment opportunity, developed strategies, and __________ to her business.

Indemnification clauses should be reviewed by an insurance agent or broker to limit liabilities to a small business.

Mistakes that an employee makes in assembling a product for a customer could be a(n)

Since Melissa is starting a day care center in her home, what business risks should be insured? How can an insurance agent assist in the insurance evaluation process?

Loss reduction is defined as preventing losses from ever happening .

Self-insurance requires

To evaluate an insurance program, which question should be answered first?

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

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

A carton of eggs broke onto the floor in the dairy section, making the floor slippery. Little Johnny slipped, fell, and hit his head on the floor, causing a cut and mild concussion. The grocery store incurs _________________ liability for his injuries.

Driving as safely as possible is an example of loss

Pure risk refers to a situation where only loss or no loss can occur-there is no potential gain.

Harold's ownership of a moving van for use in his business represents which form of risk?

Assume a contract exists between Mr. Jones, a college professor, and his student, Mr. Smith. Jones provides a syllabus, instruction, tutoring, and assessments of learning but Smith fails the class. Which of the following elements is absent in this case?

Pain, suffering, mental anguish and loss of physical abilities are included in which type of damages in a tort case?

Funds transfer fraud provides coverage primarily against employee dishonesty.

A "prudent person" is also known as:

Disability buyout insurance

Richard must carry workers' compensation insurance to fulfill his ________________ obligation.

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