Question 1

Pure risk always exists when the possibility of a loss is present but the possible extent of the loss is unknown.

Accepted Answer

A) True 
 B)False

Question 2

Purchasing materials for just-in-time delivery increases the risk of theft.

Accepted Answer

A) True 
 B)False

Question 3

Making daily cash deposits and varying the deposit time from day to day are highly recommended to keep the probability of armed robberies down.

Accepted Answer

A) True 
 B)False

Question 4

_____ provide(s) protection against the failure of a contractor to fulfill contractual obligations.

Accepted Answer

A)  Fidelity bonds 
B)  Key person insurance 
C)  Surety bonds 
D)  Business insurance 
A)  Fidelity bonds 
B)  Key person insurance 
C)  Surety bonds 
D)  Business insurance

Question 5

Rob Bateman, the owner of a small business, bought a basic fire insurance cover to insure his business against losses caused by accidental fires. Bateman's fire insurance policy can additionally be supplemented by a(n) _____ as an insurance against explosion, smoke damage, and windstorms.

Accepted Answer

A)  professional liability insurance 
B)  fidelity bond 
C)  surety bond 
D)  extended-coverage endorsement 
A)  professional liability insurance 
B)  fidelity bond 
C)  surety bond 
D)  extended-coverage endorsement

Question 6

You can reduce the costs of insurance by raising your deductible.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following provisions requires policyholders to buy insurance in an amount equal to a specified percentage of the property value?

Accepted Answer

A)  Prize indemnity insurance provision 
B)  Coinsurance provision 
C)  Self-insurance provision 
D)  Basic insurance provision 
A)  Prize indemnity insurance provision 
B)  Coinsurance provision 
C)  Self-insurance provision 
D)  Basic insurance provision

Question 8

Criminal acts have forced not only small but even large businesses into insolvency.

Accepted Answer

A) True 
 B)False

Question 9

Health insurance is less frequently used in small firms.

Accepted Answer

A) True 
 B)False

Question 10

_____ helps insure against employee fraud or theft.

Accepted Answer

A)  Fidelity bonding 
B)  Coinsurance 
C)  Surety bonding 
D)  Casualty insurance 
A)  Fidelity bonding 
B)  Coinsurance 
C)  Surety bonding 
D)  Casualty insurance

Question 11

Which of the following defines risk management?

Accepted Answer

A)  It is the process of conserving earning power and assets by minimizing the shock from losses. 
B)  It is the process of managing an organization's workforce. 
C)  It is the process of increasing productivity by strategically managing the workflow. 
D)  It is the process of measuring employee performance in organizations. 
A)  It is the process of conserving earning power and assets by minimizing the shock from losses. 
B)  It is the process of managing an organization's workforce. 
C)  It is the process of increasing productivity by strategically managing the workflow. 
D)  It is the process of measuring employee performance in organizations.

Question 12

Professional liability insurance is also known as malpractice insurance.

Accepted Answer

A) True 
 B)False

Question 13

Dogs are considered to be effective deterrents against armed robbers.

Accepted Answer

A) True 
 B)False

Question 14

Insurance is an example of _____.

Accepted Answer

A)  risk avoidance 
B)  risk prevention 
C)  risk transfer 
D)  loss control 
A)  risk avoidance 
B)  risk prevention 
C)  risk transfer 
D)  loss control

Question 15

Which of the following constitutes a white-collar crime?

Accepted Answer

A)  Kidnapping 
B)  Shoplifting 
C)  Physically assaulting one's neighbor 
D)  Falsifying accounts 
A)  Kidnapping 
B)  Shoplifting 
C)  Physically assaulting one's neighbor 
D)  Falsifying accounts

Question 16

An offer of a new policy to replace one that is flawed implies a red flag in the process of choosing an insurer.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is/are issued by insurers to guarantee that employees and others with whom the company transacts business are honest?

Accepted Answer

A)  Fidelity bonds 
B)  Revenue bonds 
C)  Key person insurance 
D)  Business insurance 
A)  Fidelity bonds 
B)  Revenue bonds 
C)  Key person insurance 
D)  Business insurance

Question 18

Which of the following defines risk avoidance?

Accepted Answer

A)  It refers to the practice of refusing to undertake an activity when the risk seems too costly. 
B)  It refers to the practice of using various methods to reduce the possibility of a loss occurring. 
C)  It refers to the shifting of risks to someone outside the company. 
D)  It refers to the strategy of setting aside funds to meet losses. 
A)  It refers to the practice of refusing to undertake an activity when the risk seems too costly. 
B)  It refers to the practice of using various methods to reduce the possibility of a loss occurring. 
C)  It refers to the shifting of risks to someone outside the company. 
D)  It refers to the strategy of setting aside funds to meet losses.

Question 19

Define white collar crime. What are the different ways to minimize white collar crimes?

Accepted Answer

White-collar crimes are those primarily

Question 20

List some measures that small business owners can take to prevent crime and reduce workplace violence.

Accepted Answer

Small business owners need to practice c

Pure risk always exists when the possibility of a loss is present but the possible extent of the loss is unknown.

Purchasing materials for just-in-time delivery increases the risk of theft.

Making daily cash deposits and varying the deposit time from day to day are highly recommended to keep the probability of armed robberies down.

_____ provide(s) protection against the failure of a contractor to fulfill contractual obligations.

Rob Bateman, the owner of a small business, bought a basic fire insurance cover to insure his business against losses caused by accidental fires. Bateman's fire insurance policy can additionally be supplemented by a(n) _____ as an insurance against explosion, smoke damage, and windstorms.

You can reduce the costs of insurance by raising your deductible.

Which of the following provisions requires policyholders to buy insurance in an amount equal to a specified percentage of the property value?

Criminal acts have forced not only small but even large businesses into insolvency.

Health insurance is less frequently used in small firms.

_____ helps insure against employee fraud or theft.

Which of the following defines risk management?

Professional liability insurance is also known as malpractice insurance.

Dogs are considered to be effective deterrents against armed robbers.

Insurance is an example of _____.

Which of the following constitutes a white-collar crime?

An offer of a new policy to replace one that is flawed implies a red flag in the process of choosing an insurer.

Which of the following is/are issued by insurers to guarantee that employees and others with whom the company transacts business are honest?

Which of the following defines risk avoidance?

Define white collar crime. What are the different ways to minimize white collar crimes?

List some measures that small business owners can take to prevent crime and reduce workplace violence.

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

Pure risk always exists when the possibility of a loss is present but the possible extent of the loss is unknown.

Purchasing materials for just-in-time delivery increases the risk of theft.

Making daily cash deposits and varying the deposit time from day to day are highly recommended to keep the probability of armed robberies down.

_____ provide(s) protection against the failure of a contractor to fulfill contractual obligations.

Rob Bateman, the owner of a small business, bought a basic fire insurance cover to insure his business against losses caused by accidental fires. Bateman's fire insurance policy can additionally be supplemented by a(n) _____ as an insurance against explosion, smoke damage, and windstorms.

You can reduce the costs of insurance by raising your deductible.

Which of the following provisions requires policyholders to buy insurance in an amount equal to a specified percentage of the property value?

Criminal acts have forced not only small but even large businesses into insolvency.

Health insurance is less frequently used in small firms.

_____ helps insure against employee fraud or theft.

Which of the following defines risk management?

Professional liability insurance is also known as malpractice insurance.

Dogs are considered to be effective deterrents against armed robbers.

Insurance is an example of _____.

Which of the following constitutes a white-collar crime?

An offer of a new policy to replace one that is flawed implies a red flag in the process of choosing an insurer.

Which of the following is/are issued by insurers to guarantee that employees and others with whom the company transacts business are honest?

Which of the following defines risk avoidance?

Define white collar crime. What are the different ways to minimize white collar crimes?

List some measures that small business owners can take to prevent crime and reduce workplace violence.

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