VOCABULARY
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QUESTIONS
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QUESTIONS
100
Bilk
What is Cheat, swindle, defraud
100
Perishability
What is A product’s ability to withstand being stored
100
People who go into business know that the business may not succeed. This possibility is referred to as business Select one: a. retention. b. downsizing. c. economizing. d. risk.
What is RISK
100
hich of the following is an example of a business risk that cannot be covered by insurance: Select one: a. Increase in interest rates b. Destruction of building by fire c. Goods lost in transit d. Injury of employee on the job
What is INCREASE IN INTEREST RATES
100
usinesses can protect themselves from the risk associated with lost shipments by Select one: a. inspecting shipments of goods. b. training receiving personnel. c. purchasing transportation insurance. d. selecting resale items carefully.
What is PURCHASING TRANSPORTATION INSURANCE
200
The possibility of loss (failure) or gain (success) inherent in conducting business
What is Business risk
200
Revenue
What is Income
200
Changes in the market that cause prices to go up or down, products to change, and businesses to succeed or fail are examples of __________ risks. Select one: a. economic b. competitive c. human d. natural
What is ECONOMIC
200
Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of __________ the risk. Select one: a. avoiding b. preventing or controlling c. retaining d. transferring
What is AVOIDING
200
If a risk is small in terms of money, a business may decide to __________ the risk. Select one: a. avoid b. transfer c. retain d. control
What is RETAIN
300
Fidelity bond
What is Insurance coverage to protect a business from losses due to employee theft
300
Speculative risks
What is Chances of loss that may result in loss, no change, or gain
300
inancial loss from investing time and money to comply with accounting standards is an example of which economic risk: Select one: a. Government intervention b. Shifts in customer demand c. Choice of business location d. Business conditions
What is GOVERNMENT INTERVENTION
300
Carefully selecting goods or services to sell is an example of handling business risks by __________ the risk. Select one: a. transferring b. preventing or controlling c. avoiding d. retaining
What is PREVENTING OR CONTROLLING
300
When a business keeps a risk because management is unaware of it, the business is __________ the risk. Select one: a. transferring b. retaining c. avoiding d. preventing or controlling
What is Retaining
400
Liability insurance
What is A contractual agreement that provides compensation for losses that a person or business is responsible for
400
Terrorism
What is Threat of violence
400
A garden store customer tripped over a plant, fell, and sued the store for damages. This is an example of a(n) __________ risk. Select one: a. accidental b. economic c. natural d. human
What is HUMAN
400
Careful screening of credit customers is an example of handling business risks through Select one: a. management. b. training. c. prevention. d. retention.
What is PREVENTION
400
Contractual agreements such as guarantees, surety bonds, and leases are examples of business risks being handled through Select one: a. avoidance. b. transfer. c. prevention or control. d. management.
What is Transfer.
500
Obsolescence
What is The state of being outmoded or unfashionable
500
A promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected
What is Warranty
500
Which of the following is a pure business risk: Select one: a. Competition b. Robbery c. Product obsolescence d. Economic conditions
What is ROBBERY
500
he act of reducing or removing risks by shifting the risk factor to another person or business is referred to as __________ risk. Select one: a. transferring b. avoiding c. retaining d. controlling
What is TRANSFERRING
500
Having well-planned buildings and providing effective employee training are ways that a business can __________ business risks. Select one: a. prevent or control b. retain c. transfer d. insure against
What is Prevent or control
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