Question 1

Workers' compensation insurance

Accepted Answer

A)  covers people who are found liable for professional negligence. 
B)  provides coverage against liability arising out of products sold. 
C)  is only required by 48 states. 
D)  guarantees payment of wages and medical costs for employees who are injured on the job. 
A)  covers people who are found liable for professional negligence. 
B)  provides coverage against liability arising out of products sold. 
C)  is only required by 48 states. 
D)  guarantees payment of wages and medical costs for employees who are injured on the job.

Question 2

Speculative risk involves a chance of either profit or loss.

Accepted Answer

A) True 
 B)False

Question 3

A policyholder must have a(n) ________ in what is being insured, meaning that the policyholder must be the one at risk to suffer an economic loss.

Accepted Answer

A)  speculative interest 
B)  uncertain stake 
C)  unsecured holding 
D)  insurable interest 
A)  speculative interest 
B)  uncertain stake 
C)  unsecured holding 
D)  insurable interest

Question 4

Product liability insurance covers liability arising out of defective products sold.

Accepted Answer

A) True 
 B)False

Question 5

Most homeowners' insurance policies automatically provide adequate coverage for small home-based businesses.

Accepted Answer

A) True 
 B)False

Question 6

Sean is in charge of risk management for First Friends, Inc., a large chain of preschools on the East Coast. He has decided to build enterprise risk management into the organization. The first step Sean should take is to

Accepted Answer

A)  decide on the spyware software the organization should buy. 
B)  send a letter to all of the staff informing them that using e-mail for personal purposes will not be allowed. 
C)  remove the playgrounds from all of the locations. 
D)  decide which risks the organization should manage. 
A)  decide on the spyware software the organization should buy. 
B)  send a letter to all of the staff informing them that using e-mail for personal purposes will not be allowed. 
C)  remove the playgrounds from all of the locations. 
D)  decide which risks the organization should manage.

Question 7

Lyla owns a small jewelry business with only four employees. She opened her business recently and makes just enough to pay her bills each week. Yesterday, just before the end of her first quarter in business, she received a notice from the government indicating that she needed to provide evidence of workers' compensation insurance. Lyla

Accepted Answer

A)  realized she was required to provide this insurance so she immediately got a policy. 
B)  is not required to carry workers' compensation because she has less than ten employees. 
C)  doesn't need workers' compensation because her business is in Louisiana. 
D)  doesn't need workers' compensation because she is not in the construction business. 
A)  realized she was required to provide this insurance so she immediately got a policy. 
B)  is not required to carry workers' compensation because she has less than ten employees. 
C)  doesn't need workers' compensation because her business is in Louisiana. 
D)  doesn't need workers' compensation because she is not in the construction business.

Question 8

The premium charged for workers' compensation insurance is the same for all workers, regardless of their occupation.

Accepted Answer

A) True 
 B)False

Workers' compensation insurance

Speculative risk involves a chance of either profit or loss.

A policyholder must have a(n) ________ in what is being insured, meaning that the policyholder must be the one at risk to suffer an economic loss.

Product liability insurance covers liability arising out of defective products sold.

Most homeowners' insurance policies automatically provide adequate coverage for small home-based businesses.

Sean is in charge of risk management for First Friends, Inc., a large chain of preschools on the East Coast. He has decided to build enterprise risk management into the organization. The first step Sean should take is to

The premium charged for workers' compensation insurance is the same for all workers, regardless of their occupation.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Personal Finances

Filters

Exam 23: Managing Risk

Workers' compensation insurance

Speculative risk involves a chance of either profit or loss.

A policyholder must have a(n) ________ in what is being insured, meaning that the policyholder must be the one at risk to suffer an economic loss.

Product liability insurance covers liability arising out of defective products sold.

Most homeowners' insurance policies automatically provide adequate coverage for small home-based businesses.

Sean is in charge of risk management for First Friends, Inc., a large chain of preschools on the East Coast. He has decided to build enterprise risk management into the organization. The first step Sean should take is to

The premium charged for workers' compensation insurance is the same for all workers, regardless of their occupation.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Personal Finances

Filters