Risk Types
Insurance/Bonds
Risk Handling
Human, Natural or Economic
Math Stuff
100
The possibility of financial loss is also known as?
A) acceptable risk
B) risk taking
C) economic risk

D) business risk
100
What type of insurance covers the loss of or damage to buildings, equipment, machinery, merchandise, furniture or fixtures?
A) Liability insurance
B) Goods insurance
C) Property insurance
D) Owners insurance
C) Property insurance
100
Which of the following is NOT a way to to handle business risk?
A) risk prevention and control
B) risk transfer
C) risk retention
D) risk insurance
D) risk insurance
100
A drought is what type of risk?
A) Human
B) Natural
C) Economic
B) Natural
100
If an insurance policy of $412 is due every three months. Calculate this cost as a monthly expense.
A) $137.33
B) $1236.00
C) $4944.00
D) $1647.96
A) $137.33 ($412 divided by 3 months)
200
_________ are risks that result from changes in overall business conditions.
A) economic risks
B) unacceptable risks
C) acceptable risks
D)natural risks
A) economic risks
200
A contract between a business and an insurance company to cover a specific business risk is called a(n) __________. A) extended coverage B) loss policy C) insurance policy D) financial hardship policy
C) insurance policy
200
Which of the following is NOT a way to control theft?
A) using computerized sales reports
B) electronic anti-theft tagging devices
C) closed circuit tv systems
D) property insurance
D) property insurance
200
Theft is what type of risk?
A) Human
B) Natural
C) Economic
A) Human
200
If I buy 100 shares of a stock for $1/share and there is a $25 broker's fee, how much am I paying in total for the stock? A) $75.00
B) $125.00
C) $100.25
D) $10,000
B) $125.00
300
An employee lying about hours worked is considered a _________ type of risk.
A) natural
B) personal
C) employee
D) human
D) human
300
Fidelity bonds protect __________.
A) a business from employee dishonesty
B) a business from customer dishonesty
C) a customer from business dishonesty
D) a customer from employee dishonesty
A) a business from employee dishonesty
300
Which of the following is NOT a way to transfer risk?
A) transferring risk through comprehensive no fault conditions
B) transferring risk through business ownership
C) purchasing insurance
A) transferring risk through comprehensive no fault conditions
300
A recession is what type of risk?
A) Human
B) Natural
C) Economic
C) Economic
300
If you have weekly sales of 100, 200 and 300 dollars, what are your average sales for the three week period? A) $200.00
B) $600.00
C) $400.00
D) $100.00
A) $200.00 (Add the three amounts and divide by weeks)
400
The systematic process of managing an organization's risks to achieve objectives in a manner consistent with public interest, human safety, environmental needs, and the law is called ______________?
A) business risk B) risk management C) economic risk D) human risk
B) risk management
400
Performance bonds provide __________.
A) financial protection from the bank when payments can not be made.
B) financial protection for losses that might occur when a construction project is not finished due to a contractor's financial condition
C) legal protection for losses that might occur when a construction project is not finished due to a contractor's financial condition
D) legal protection for losses that might occur when a construction project is not finished due to a natural disaster
B) financial protection for losses that might occur when a construction project is not finished due to a contractor's financial condition
400
Locking doors at night, increasing lighting and hiring security guards are good ways to deter theft?
True or false?
True
400
War is what type of risk?
A) Human
B) Natural
C) Economic
B) Natural War is actually considered a natural risk even though it is directly caused by humans.
400
It is estimated that four percent is added to the price of a product to cover shoplifting losses. Calculate the price of a $29.99 skateboard without the four percent "hidden tax" due to shoplifting losses.
A) $31.19
B) $30.03
C) $28.04
D) $28.79
$28.79 (Multiply the price, 29.99, by the tax, 4%, and subtract the total from the price)
500
Risks caused by natural occurrences are _________?
A) unavoidable risks
B) natural risks
C) human risks
D) business risks
B) natural risks
500
_________ reimburses the business owner for the replacement cost of buildings and other personal property.
A) Automatic Increase Protection
B) Replacement Cost Coverage
C) Personal Coverage
D) Federal Reimbursement Act
B) Replacement Cost Coverage
500
Mistakes in the workplace are what type of risk?
A) Human
B) Natural
C) Economic
A) Human
500
If you have averaged $300 per month in sales for the first 3 months of the year, what will your total sales for the year be?
A) $3600.00 B) $900.00 C) $3000.00 D) $-300
A) $3600.00 (12 months x $300 avg sales)
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