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Risk Management in Business Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. A tornado swept through a city making it difficult for a small business to earn money for some time. What kind of insurance would help to minimize the loss of income?

Question 2 2. The proposition that a prediction based upon a sample of 10,000 occurrences is more accurate than a prediction based upon 100 occurrences is an illustration of the _____.

Question 3 3. Assessing risks in terms of probability and magnitude of impact is called:

Question 4 4. What is the process for determining the types of risks to which the company is exposed:

Question 5 5. Which of the following is an example of an environmental change related to an economic factor?

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Question 6 6. Which of the following statements is the best explanation of how insurance allows a company to manage risk?

Question 7 7. Which of the following management decisions involves risk reduction?

Question 8 8. How is the Indemnity principle different from the Subrogation rights?

Question 9 9. Which one of the following is NOT a step involved in risk management?

Question 10 10. How is risk related to insurance?

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Question 11 11. Risks relating to changes in technological factors are _ to manage because of the high rate of change in technology.

Question 12 12. Which one of the following is an example of environmental change related to the external political environment?

Question 13 13. Samantha is a CEO of a large marketing company. She is trying to determine what external factors may impact the business in the next few months. She is concerned about the 2018 midterm elections and has decided to invest money into a PAC of a pro-business independent candidate. Another cause for concern is the increasing number of complaints regarding her IT sector. Which of the following may impact her business, and how can she manage these factors?

Question 14 14. What type of insurance provides protection against damage or loss to property or people due to accidents or natural disasters?

Question 15 15. Which of the following is NOT a step in the risk management process?

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Question 16 16. How does insurance allow a person or business to manage risk?

Question 17 17. What holds that an insured party is entitled to receive a payment from the insurance company no greater than the value of the loss incurred?

Question 18 18. An _ is a special type of contract that transfers risk from the policyholder to the insurance company in exchange for a fee, called an _.

Question 19 19. Obtaining _ is one of the most common methods of risk management.

Question 20 20. A process that businesses use to address risk is called:

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Question 21 21. The external environment include(s):

Question 22 22. Zuk company Ltd. decides to launch a brand new type of bicycle called the Zukbike. The company accepts this risk and is prepared to pay for the losses that may occur. Which type of risk management approach is being used by the company?

Question 23 23. Mary is in a car accident, and her car is completely destroyed. Her policy limit for damage to the car is $35,000. Her deductible is $1,000. The value of the car is $28,000. The insurance company is required to pay which amount?

Question 24 24. Which one of the following types of insurance is usually required by law?

Question 25 25. Who uses their math skills to help the company assess uncertainty and risk so that the company can decide whether it wants to offer insurance and at what price?

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Question 26 26. If a company purchases an insurance policy, which type of risk management approach is it using?

Question 27 27. What is the difference between general liability insurance and product liability insurance?

Question 28 28. How does technological change affect risk management?

Question 29 29. An insurance company pays your auto accident claim and then turns around and sues the other driver for negligence in your name. The company wins an award and keeps the money. This is an illustration of which of the following?

Question 30 30. Insurance companies will to insure a risk that is highly likely to occur or is inevitable.

Risk Management in Business Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Business 100: Intro to Business  /  Business Courses
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