Question 1

A consulting firm that typically does not have clients visit its business location would have minimal premises liability exposure.

Accepted Answer

A) True 
 B)False

Question 2

Requiring  all servers in a restaurant to know how to properly lift heavy objects is an example of loss

Accepted Answer

A)  avoidance. 
B)  control. 
C)  prevention. 
D)  reduction. 
A)  avoidance. 
B)  control. 
C)  prevention. 
D)  reduction.

Question 3

Match between columns
                        Premises: 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
Stating in a property insurance policy that all direct damages are covered except those caused by perils specifically excluded
A managed-care network providing health insurance that is more expensive but offers a broader choice of medical providers
The possiblity of losses associated with the assets and earnings potential of a firm
Compensatory damages that relate to economic loss, such as medical expenses and loss of income
The uncertainty associated with an investment decision
The uncertainty associated with a situation where only loss or no loss can occur
Identifying the specific perils covered in a property insurance policy
A managed-care network providing health insurance that is less expensive but more limiting in choices of medical providers
A cause of loss, either through natural events or through the actions of people

Accepted Answer

The Answer of Health maintenance organization and Named-peril approach and is...

Question 4

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

Accepted Answer

A)  60 
B)  70 
C)  80 
D)  90 
A)  60 
B)  70 
C)  80 
D)  90

Question 5

A managed-care network providing health insurance that is more expensive than an HMO but offers a broader choice of medical providers is called a

Accepted Answer

A)  key-person organization. 
B)  package policy. 
C)  personal maintenance organization. 
D)  preferred provider organization. 
A)  key-person organization. 
B)  package policy. 
C)  personal maintenance organization. 
D)  preferred provider organization.

Question 6

Pure risk is

Accepted Answer

A)  a chance all entrepreneurs take. 
B)  a condition in which there is a possibility that an adverse deviation from a desired outcome will occur. 
C)  a probability that adverse conditions will result. 
D)  the uncertainty associated with a situation where only loss or no loss can occur. 
A)  a chance all entrepreneurs take. 
B)  a condition in which there is a possibility that an adverse deviation from a desired outcome will occur. 
C)  a probability that adverse conditions will result. 
D)  the uncertainty associated with a situation where only loss or no loss can occur.

Question 7

One risk that small businesses normally cover is loss due to the disability of a partner or other key employee of the company.

Accepted Answer

A) True 
 B)False

Question 8

Doug works security at a bar and was recently hurt by a patron who was being forcibly removed from the premises.  He believes he has been wrongfully treated by the bar. What four elements must be in place for Doug to make a claim that the bistro has been negligent?

Accepted Answer

- Existence of a legal duty between the

Question 9

ACV refers to the depreciated value of a property.

Accepted Answer

A) True 
 B)False

Question 10

Compensatory damages include ________ damages.

Accepted Answer

A)  economic 
B)  breach 
C)  tort 
D)  punitive 
A)  economic 
B)  breach 
C)  tort 
D)  punitive

Question 11

After discussing the risk management process, list specific areas of concern for each step.

Accepted Answer

The five steps required for a program an

Question 12

The company's ability to absorb losses will determine what smaller potential losses will be insured.

Accepted Answer

A) True 
 B)False

Question 13

Which insurance coverage is required by law in most states?

Accepted Answer

A)  Workers' compensation 
B)  Product liability insurance 
C)  Key executive coverage 
D)  Employee bonding 
A)  Workers' compensation 
B)  Product liability insurance 
C)  Key executive coverage 
D)  Employee bonding

Question 14

When considering the feasibility and affordability of insuring small potential losses, which company program will impact this decision?

Accepted Answer

A)  ACV 
B)  FICA 
C)  Self-insurance 
D)  Workers' compensation 
A)  ACV 
B)  FICA 
C)  Self-insurance 
D)  Workers' compensation

Question 15

A policy for small businesses that do not qualify for a BOP that combines property insurance and commercial general liability insurance is called a

Accepted Answer

A)  personal policy. 
B)  package policy. 
C)  health policy. 
D)  business owner's policy. 
A)  personal policy. 
B)  package policy. 
C)  health policy. 
D)  business owner's policy.

Question 16

Business interruption insurance pays for lost income following the interruption of business operations.

Accepted Answer

A) True 
 B)False

Question 17

Damage to a building by flooding is an example of

Accepted Answer

A)  a benign neglect loss. 
B)  a direct loss. 
C)  a tort-based liability claim. 
D)  a depreciated cash value loss. 
A)  a benign neglect loss. 
B)  a direct loss. 
C)  a tort-based liability claim. 
D)  a depreciated cash value loss.

A consulting firm that typically does not have clients visit its business location would have minimal premises liability exposure.

Requiring all servers in a restaurant to know how to properly lift heavy objects is an example of loss

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

A managed-care network providing health insurance that is more expensive than an HMO but offers a broader choice of medical providers is called a

Pure risk is

One risk that small businesses normally cover is loss due to the disability of a partner or other key employee of the company.

Doug works security at a bar and was recently hurt by a patron who was being forcibly removed from the premises. He believes he has been wrongfully treated by the bar. What four elements must be in place for Doug to make a claim that the bistro has been negligent?

ACV refers to the depreciated value of a property.

Compensatory damages include ________ damages.

After discussing the risk management process, list specific areas of concern for each step.

The company's ability to absorb losses will determine what smaller potential losses will be insured.

Which insurance coverage is required by law in most states?

When considering the feasibility and affordability of insuring small potential losses, which company program will impact this decision?

A policy for small businesses that do not qualify for a BOP that combines property insurance and commercial general liability insurance is called a

Business interruption insurance pays for lost income following the interruption of business operations.

Damage to a building by flooding is an example of

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

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Exam 23: Managing Risk

A consulting firm that typically does not have clients visit its business location would have minimal premises liability exposure.

Requiring all servers in a restaurant to know how to properly lift heavy objects is an example of loss

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

A managed-care network providing health insurance that is more expensive than an HMO but offers a broader choice of medical providers is called a

Pure risk is

One risk that small businesses normally cover is loss due to the disability of a partner or other key employee of the company.

Doug works security at a bar and was recently hurt by a patron who was being forcibly removed from the premises. He believes he has been wrongfully treated by the bar. What four elements must be in place for Doug to make a claim that the bistro has been negligent?

ACV refers to the depreciated value of a property.

Compensatory damages include ________ damages.

After discussing the risk management process, list specific areas of concern for each step.

The company's ability to absorb losses will determine what smaller potential losses will be insured.

Which insurance coverage is required by law in most states?

When considering the feasibility and affordability of insuring small potential losses, which company program will impact this decision?

A policy for small businesses that do not qualify for a BOP that combines property insurance and commercial general liability insurance is called a

Business interruption insurance pays for lost income following the interruption of business operations.

Damage to a building by flooding is an example of

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