false
with careful planning, it is possible to avoid all risk
false
when you invest money in the stock market, you are taking a pure risk
true
if a risk is not common or if it is impossible to predict the amount of loss that could be suffered, it is termed an uninsurable risk
false
if a business transfers a risk, that means that no one assumes the risk; it is simply eliminated
false
the person or company an insurance policy is called the insured
true
with group insurance, a large number of employees and their family members are covered under one policy
true
vehicle insurance pays medical costs for those injured if people driving the company's vehicles cause an accident
true
businesses cannot insure many of the risks they face
true
when an organization broadens its product line, business risks are reduced because lower-than-expected sales of one item will not result in a complete failure for the company
false
it is usually a huge risk for a company to employ locals when it expands into the international marketplace
personal risk
a risk that involves a possible injury to your health would be classified as a
offers no opportunity for gain
a pure risk
loss from theft
which of the following is a controllable risk?
avoiding
if you choose not to complete a risky activity, you are said to be ____ the risk
using other channel members to store and distribute products
a business can transfer the risk of product damage by
the insurance company and the policyholder have agreed
an insurance policy states the conditions to which
insured
the person or business for which an insurance company assumes the risk is called the
premium
the amount a policyholder must pay for insurance coverage is a
usually sell many kinds of policies from a number of different companies
independent insurance agents
liability insurance
this type of insurance protects against losses from injury to people or property resulting from the products, services, or actions of a business
personnel, property, and operations
the three major categories of business insurance are
life insurance
which of the following pays the amount of an insurance policy upon the death of the insured?
workers' compensation
a system of insurance set up by state law that pays employees who are injured on the job is called
provides compensation for ongoing business expenses that occur if a business has a temporary shutdown due to a fire, flood, or other major problem
business interruption insurance
all of the above
...