Multiple Choice Identify the
choice that best completes the statement or answers the question.
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1.
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The process of identifying risks that apply to your business and planning how to
handle them is called...
a. | Risk Management | c. | Insurale Interest | b. | Economic Planning | d. | BusinessManagement |
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2.
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All risks are classified as either speculative or...
a. | Natural | c. | Human | b. | Controllable | d. | Pure |
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3.
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An uninsurable risk is one that...
a. | Cannot be predicted | c. | Is caused by nature | b. | Cannot be avoided | d. | An insurance company will not
cover |
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4.
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The potential of credit not being repaid is...
a. | Debtor-Creditor Relationship | c. | Pure Risk | b. | Credit
Risk | d. | Market
Risk |
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5.
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Shoplifting is a type of...
a. | Natural Risk | c. | Human Risk | b. | Market Risk | d. | Economic Risk |
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6.
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Embezzlement is a form of...
a. | Fraud | c. | Robbery | b. | Burglary | d. | Shoplifting |
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7.
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An electronic tag on merchandise that sets off an alarm if it is removed from
the store is an example of a...
a. | Surveillance System | c. | Security Policy | b. | Theft Deterrent | d. | Safety Program |
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8.
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One of the rewards of extending credit ot customers is...
a. | Allowing customers to purchase more than they can afford. | b. | Creating cash flow
problems for the business. | c. | Building customer loyalty. | d. | Generating business
for collection agencies. |
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9.
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The type of insurance that provides medical and financial support for workers
who are injured on the job is...
a. | Business Owners’s Policy Insurance | c. | Employee Health
Insurance | b. | Corporate Insurance | d. | Worker’s Compensation |
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10.
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An agreement that promises to give customers their money back if a product is
faulty is a(n)...
a. | Warranty | c. | Insurance Policy | b. | Guarantee | d. | Surety Bond |
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11.
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Inventory loss due to shoplifting, employee theft, paperwork errors and/or
vendor fraud is called...
a. | Shrinkage | c. | Robbery | b. | Burglary | d. | Merchandise
Loss |
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12.
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If a business chooses to self insure, the business is responsible for ___% of
the risk.
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13.
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Political risk is greatest for companies that..
a. | Participate in the global market | b. | Do not have free trade
agreements | c. | Do business with foreign companies that change their import and export
policies | d. | All of the above |
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14.
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An individual who owes money for goods and services received is called...
a. | Debtor | c. | Guarantor | b. | Creditor | d. | Vendor |
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15.
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An installment loan...
a. | Is a loan paid in regular payments. | c. | Could require
collateral. | b. | Is also known as a secured loan. | d. | All of the
above. |
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16.
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A credit application to offer credit to customers in order to check a
customer’s..
a. | Family History | c. | Educational History | b. | Financial Background | d. | Family
Background |
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17.
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A three party contract that guarantees one party fulfills its obligation to
ascond party, and the third paty makes payment if the obligation is not met is known as...
a. | Surety Bond | c. | Guarantee | b. | Warranty | d. | Fidelity Bond |
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18.
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The three C’s of Credit do NOT include:
a. | Character | c. | Contract | b. | Capacity | d. | Capital |
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19.
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A report that shows when customers bills are due as well as how long the
accounts have been outstanding is called...
a. | An Accounts Receivable Aging Report | b. | A Credit Report | c. | A Risk
Assessment | d. | A Debit Report |
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20.
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Measures taken to ensure data security include:
a. | Safes and lock boxes | c. | Keys and Pass Codes | b. | Firewalls and strong
passwords | d. | None of the
above |
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21.
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A form of risk management that spreads individual risk among a large group in
order to reduce the cost of losses to a single member of the group is known as...
a. | Contracts | c. | Insurance | b. | Warranties | d. | Guarantees |
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22.
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A type of insurance that provides protection for injuries or damage resulting
from faulty products.
a. | Product Liability | c. | Professional Liability | b. | General
Liability | d. | Business
Interruption Insurance |
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23.
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A type of insurance that provide compensation for loss due to fire, theft or
similar disasters that close a business. This insurance covers loss of income, continuing
expenses, and utility expenses.
a. | General Liabillity | c. | Professional Liability | b. | Product
Liability | d. | Business
Interruption Insurance |
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24.
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Insurable interest means that the policyholder is at risk of suffering a
loss. In order to be an insurable interest, the insured loss must be...
a. | Measurable | c. | Both A and B | b. | Unexpected | d. | Neither A nor B |
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25.
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A type of employee insurance that guarantees payment of wages, medical care, and
rehabilitation services for employees injured on the job.
a. | Group Health Insurance | c. | Medical Insurance | b. | Worker’s Compensation | d. | Basic Health
Insurance |
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26.
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The continued and regular patronage of a business even when there are other
places to purchase the same of similar products is a reward for offering credit to customers commonly
known as...
a. | Customer Rewards | c. | Customer Prizes | b. | Customer Risk | d. | Customer
Loyalty |
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Matching
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Read the numbered definitions. Then, choose the correct term from the list
that best defines the term. a. | Burglary | f. | Guarantee | b. | Credit
Bureau | g. | Robbery | c. | Credt Report | h. | Shoplifter | d. | Embezzlement | i. | Surety Bond | e. | Fraud | j. | Warranty |
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27.
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Cheating or deceiving a busienss out of money or property.
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28.
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A promise to replace or repair faulty products.
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29.
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Breaking into a business to steal money, merchandise, or confidential
information.
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30.
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Someone trusted with confidential information, financial records, money, or
other valuables takes it for personal gain.
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31.
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Someone who takes goods from a store without paying for them.
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32.
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A private firm that maintains consumer credit data and provides information to
businesses for a fee.
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33.
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A three party contract that guarantees that one party will fulfill its
obligations to a second party.
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34.
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Theft involving another person, often through the use of force or
violence.
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35.
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A record of a company or person’s credit history and financial
behavior.
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36.
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Apromise to refund money paid for a faulty product.
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Read each or the following definitions or scenarios and determine which type of
risk is involved. The answer choices may be used more than once. a. | Economic Risk | d. | Natural
Risk | b. | Human Risk | e. | Political Risk | c. | Market Risk |
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37.
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Conditions in the United States or other countries may create risk for global
businesses.
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38.
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The potential for the target market for new goods and/or services to be less
than originally thought.
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39.
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The San Gabriel river overflowed its banks this past Spring when a storm system
moved through the area. Some businesses suffered flooding and property damage.
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40.
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The global pandemic known as CoVid caused many small business to close in parts
of the country that were unable to open.
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41.
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Situations caused by customers or employees that pose potential risks for
theft.
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42.
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Negative business conditions cause local and national communities to
suffer.
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43.
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Evacuations along the coastline pose risks as a hurricane forms in the Gulf of
Mexico.
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44.
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Identity Theft affects a large number of people who have accounts with a
business that just had their databases hacked by criminals.
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45.
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A local ice cream shop underestimated how many local citizens would be eating
healthier after the new year.
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46.
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A business sets strict policies with regards to accepting checks due to a
recent increase in checks being written with insufficient funds to cover the checks.
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47.
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Wildfires spread across California as local communities evacuate to safer
locations.
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48.
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Employees are tasked with monitoring the sales floor in hopes of detering a
customer from shoplifting.
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49.
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If the U.S. falls into a deep recession, people may lose their jobs which will
have a negative impact on consumer spending over a long period of time.
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50.
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A recent development in the technology industry has caused the demand for
bluetooth products to plummet.
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