Question 1

Risk management is the process of increasing productivity by strategically managing the workflow.

Accepted Answer

A) True 
 B)False  False

Question 2

Self-insurance is usually impractical for very small businesses.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is an effective way of minimizing white-collar crime?

Accepted Answer

A)  Conducting audits of sales transaction data 
B)  Curtailing corporate crime prosecution budgets 
C)  Restricting disclosure 
D)  Terminating the pension system 
A)  Conducting audits of sales transaction data 
B)  Curtailing corporate crime prosecution budgets 
C)  Restricting disclosure 
D)  Terminating the pension system A

Question 4

What are the different ways of coping with risk?

Accepted Answer

There are many ways of coping with risk.

Question 5

Which of the following is a characteristic of a pure risk?

Accepted Answer

A)  It cannot be analyzed statistically. 
B)  It is typically uninsurable. 
C)  It exists when the possibility of a loss is present but the possible extent of the loss is unknown. 
D)  It refers to the uncertainty as to whether a voluntarily undertaken activity will result in a gain or a loss. 
A)  It cannot be analyzed statistically. 
B)  It is typically uninsurable. 
C)  It exists when the possibility of a loss is present but the possible extent of the loss is unknown. 
D)  It refers to the uncertainty as to whether a voluntarily undertaken activity will result in a gain or a loss.

Question 6

Coinsurance is usually used in which of the following types of insurance contracts?

Accepted Answer

A)  Travel insurance contracts 
B)  Workers' compensation contracts 
C)  Property insurance contracts 
D)  Ransom insurance contracts 
A)  Travel insurance contracts 
B)  Workers' compensation contracts 
C)  Property insurance contracts 
D)  Ransom insurance contracts

Question 7

_____ allows retailers to demand payment of shoplifters or their parents for the items taken.

Accepted Answer

A)  Social justice 
B)  Civil restitution 
C)  Redistributive taxation 
D)  Organizational justice 
A)  Social justice 
B)  Civil restitution 
C)  Redistributive taxation 
D)  Organizational justice

Question 8

_____is the uncertainty that some unpredictable event will result in a loss.

Accepted Answer

A)  Secondary risk 
B)  Speculative risk 
C)  Pure risk 
D)  Voluntary risk 
A)  Secondary risk 
B)  Speculative risk 
C)  Pure risk 
D)  Voluntary risk

Question 9

Businesses use self-insurance primarily for _____.

Accepted Answer

A)  risk avoidance 
B)  risk prevention 
C)  risk transfer 
D)  risk assumption 
A)  risk avoidance 
B)  risk prevention 
C)  risk transfer 
D)  risk assumption

Question 10

Which of the following measures can be used to enhance document security?

Accepted Answer

A)  Maintaining backups for records 
B)  Allowing only senior executives to take home confidential business records 
C)  Instituting flexible security policies 
D)  Discouraging employees to work from remote destinations 
A)  Maintaining backups for records 
B)  Allowing only senior executives to take home confidential business records 
C)  Instituting flexible security policies 
D)  Discouraging employees to work from remote destinations

Question 11

Independent insurance agents represent more than one insurance company.

Accepted Answer

A) True 
 B)False

Question 12

Theft by employees is referred to as shoplifting.

Accepted Answer

A) True 
 B)False

Question 13

_____ refers to shifting a risk to someone outside the company.

Accepted Answer

A)  Risk avoidance 
B)  Risk prevention 
C)  Risk transfer 
D)  Risk assumption 
A)  Risk avoidance 
B)  Risk prevention 
C)  Risk transfer 
D)  Risk assumption

Question 14

Most property insurance contracts have a coinsurance provision to:

Accepted Answer

A)  ensure reimbursement for the full amount of covered losses. 
B)  protect a business from losses resulting from the use of its product. 
C)  protect a small business from suits resulting from mistakes made by someone in a professional context. 
D)  facilitate the continuation of a business following the death of its owner. 
A)  ensure reimbursement for the full amount of covered losses. 
B)  protect a business from losses resulting from the use of its product. 
C)  protect a small business from suits resulting from mistakes made by someone in a professional context. 
D)  facilitate the continuation of a business following the death of its owner.

Question 15

In high-crime neighborhoods, many businesses use tough, shock-resistant transparent materials in their windows instead of glass as a security measure.

Accepted Answer

A) True 
 B)False

Question 16

White-collar crimes are primarily committed by _____.

Accepted Answer

A)  managerial employees 
B)  factory workers 
C)  habitual shoplifters 
D)  laborers 
A)  managerial employees 
B)  factory workers 
C)  habitual shoplifters 
D)  laborers

Question 17

Retailers sometimes refer to losses from both theft by outsiders and theft by employees as _____.

Accepted Answer

A)  fidelity 
B)  restitution 
C)  kleptomania 
D)  shrinkage 
A)  fidelity 
B)  restitution 
C)  kleptomania 
D)  shrinkage

Question 18

Coinsurance exempts policyholders from paying the insurance premium.

Accepted Answer

A) True 
 B)False

Question 19

List some red flags to look for when choosing an insurer.

Accepted Answer

Some red flags to look for while choosin

Question 20

What are the different types of insurances that a small business owner mostly needs?

Accepted Answer

The very minimum coverage that a small b

Risk management is the process of increasing productivity by strategically managing the workflow.

Self-insurance is usually impractical for very small businesses.

Which of the following is an effective way of minimizing white-collar crime?

What are the different ways of coping with risk?

Which of the following is a characteristic of a pure risk?

Coinsurance is usually used in which of the following types of insurance contracts?

_____ allows retailers to demand payment of shoplifters or their parents for the items taken.

_____is the uncertainty that some unpredictable event will result in a loss.

Businesses use self-insurance primarily for _____.

Which of the following measures can be used to enhance document security?

Independent insurance agents represent more than one insurance company.

Theft by employees is referred to as shoplifting.

_____ refers to shifting a risk to someone outside the company.

Most property insurance contracts have a coinsurance provision to:

In high-crime neighborhoods, many businesses use tough, shock-resistant transparent materials in their windows instead of glass as a security measure.

White-collar crimes are primarily committed by _____.

Retailers sometimes refer to losses from both theft by outsiders and theft by employees as _____.

Coinsurance exempts policyholders from paying the insurance premium.

List some red flags to look for when choosing an insurer.

What are the different types of insurances that a small business owner mostly needs?

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Filters

Exam 17: Risk Management, Insurance, and Crime Prevention

Risk management is the process of increasing productivity by strategically managing the workflow.

Self-insurance is usually impractical for very small businesses.

Which of the following is an effective way of minimizing white-collar crime?

What are the different ways of coping with risk?

Which of the following is a characteristic of a pure risk?

Coinsurance is usually used in which of the following types of insurance contracts?

_____ allows retailers to demand payment of shoplifters or their parents for the items taken.

_____is the uncertainty that some unpredictable event will result in a loss.

Businesses use self-insurance primarily for _____.

Which of the following measures can be used to enhance document security?

Independent insurance agents represent more than one insurance company.

Theft by employees is referred to as shoplifting.

_____ refers to shifting a risk to someone outside the company.

Most property insurance contracts have a coinsurance provision to:

In high-crime neighborhoods, many businesses use tough, shock-resistant transparent materials in their windows instead of glass as a security measure.

White-collar crimes are primarily committed by _____.

Retailers sometimes refer to losses from both theft by outsiders and theft by employees as _____.

Coinsurance exempts policyholders from paying the insurance premium.

List some red flags to look for when choosing an insurer.

What are the different types of insurances that a small business owner mostly needs?

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Filters