Introduction to Business

Section 1: Types of Risk

Self-Checks

1
A risk is the ________ of loss or injury.
A)anticipation
B)probability
C)possibility
D)unknown source
2
The systemic process of managing risk to achieve an objective is called ________ .
A)insurance
B)insurance underwriting
C)risk calculation
D)risk management
3
A risk that is unacceptable to insurance carriers because the likelihood of loss is too high ________ is called risk.
A)excessive
B)maximum
C)unacceptable
D)uninsurable
4
Controllable risk occurs when conditions can be controlled to ________ the chance of harm.
A)eliminate
B)maximize
C)minimize
D)understate
5
A pure risk is the threat of a loss with ________ for gain.
A)limited potential
B)maximum opportunity
C)no opportunity
D)unlimited potential
6
The potential for losses to others that occur as a result of injury or damage that you may have caused is called ________ .
A)human risk
B)liability risk
C)personal risk
D)private risk
7
The risk associated with unemployment is an example of ________ .
A)business risk
B)human risk
C)personal risk
D)pure risk
8
The possibility of a catastrophe caused by a tornado is an example of ________ .
A)employee risk
B)human risk
C)natural risk
D)uninsurable risk
9
An insurable risk is a risk that meets an insurance company's ________ for insurance coverage.
A)criteria
B)history
C)projection
D)timeline
10
The risk of customer dishonesty can be classified as economic and ________ .
A)human
B)natural
C)pure
D)uninsurable
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