Introduction to Business

Chapter 33: The Basics of Risk Management

Chapter Practice Review Quizzes

1
Which term refers to paid protection against loss due to injury or property damage?
A)insurance
B)risk management
C)opportunity cost
D)equity
2
Which is an example of an uninsurable risk?
A)property used in a commercial enterprise
B)property located in a residential area
C)damage to a vehicle due to an accident
D)property located in a flood zone
3
What type of risk is associated with environmental damage?
A)uncontrollable risk
B)controllable risk
C)economic risk
D)human risk
4
What type of risk is associated with doing business in the global marketplace?
A)uncontrollable risk
B)controllable risk
C)economic risk
D)human risk
5
Which are categories of economic risk?
A)dishonesty, error, and crime
B)personal. natural, and human
C)personal, property, and liability
D)insurable and uninsurable
6
Which risk is associated with illness and disability?
A)liability risk
B)personal risk
C)property
D)human risk
7
Which type of risk is associated with potential loss to others?
A)liability risk
B)personal risk
C)property
D)human risk
8
Which type of risk is associated with mistakes or dishonesty?
A)liability risk
B)personal risk
C)property
D)human risk
9
Which type of risk is associated with a catastrophe such as a tornado?
A)liability risk
B)personal risk
C)property
D)natural risk
10
Which is NOT a natural risk cause by people?
A)oil spill
B)arson
C)embezzlement
D)terrorism
11
Which term is associated with the threat of loss with no opportunity for gain?
A)human risk
B)pure risk
C)property risk
D)uncontrollable risk
12
Which is NOT a way to handle risk?
A)practice
B)avoid
C)reduce
D)transfer
13
Which is NOT an example of risk reduction?
A)installing smoke alarms
B)installing fire extinguishers
C)engaging in a hazardous activity
D)following safety rules
14
Which term refers to bearing financial responsibility for the consequences of loss?
A)risk avoidance
B)risk transfer
C)risk reduction
D)risk retention
15
What is the price an insured person or business pays for insurance protection?
A)a mortgage
B)a premium
C)a policy
D)a dividend
Glencoe Online Learning CenterBusiness Administration HomeProduct InfoSite MapContact Us

The McGraw-Hill CompaniesGlencoe

Please read our Terms of Use and Privacy Notice before you explore our Web site. To report a technical problem with this Web site, please contact the Web Producer.