no
Is it possible to avoid all risk with careful planning?
speculative
Investing money in the stock market is what type of risk, it offers the chance either to gain or to lose?
uninsurable risk
If a risk is not common or if it is impossible to predict the amount of loss that could be suffered it is what?
assumed by the insurance company
If a business transfers risk is the risk eliminated or is it assumed by the insurance company?
policyholder
The person or company buying an insurance policy.
group insurance
When a large number of employees and their family members are covered under one policy
cause
Vehicle insurance pays medical costs for those injured if people driving the company's vehicles _________an accident.
broaden
A way for businesses to reduce risk is to ______________ its product line because lower than expected sales of one item will not result in complete failure for the company.
locals
When expanding into the international marketplace it lowers a business' risk to hire who?
personal risk
A risk that involves a possible injury to your health would be classified as what?
gain
A pure risk offers no opportunity for what?
loss from theft
This is an example of controllable risk.
avoiding
When choosing not to complete a risky activity you are said to be ________________ the risk.
channel members
A business can transfer the risk of product damage by using other _________________ to store and distribute the products.
The conditions to which the insurance company and policyholder have agreed.
What information does an insurance policy state?
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
Independent insurance agents
__________________ usually sell many kinds of policies from a number of different companies.
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
life insurance
This 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
business interruption insurance
This provides compensation for ongoing business expenses that occur if a business has a temporary shutdown due to a fire, flood, or other major problem
uninsurable
Economic conditions, consumer demand, and competitors' actions would be risks faced by businesses that are _____________.
Executives must not reveal to employees that certain aspects of business operations are not fully insured.
This is an example of a POOR way for a business to manage uninsurable risks.
involve local business partners and employ local management.
To reduce international business risk, a business should
music, movies, books
These are examples of intellectual property.
patent
The exclusive right of an inventor to make, sell, and use a product or process
counterfeiting
The illegal use of intellectual property, patents, trademarks, and copyrights
loss
Risk can be thought of as the possibility of incurring a _________.
liability risk
This relates to harm or injury to other people or to their property because of your actions.
noneconomic risks
These may result in inconvenience or embarrassment but do not have a financial impact.
uncontrollable risk
A risk that cannot be reduced by your actions
insurance
This exchanges the uncertainty of a possible large financial loss for a certain smaller payment.
assuming the risk
When you complete a risky activity with full responsibility you are doing what?
claim
A policyholder's request for payment for a loss that an insurance policy covers.
insurance agent
The person who represents an insurance company and sells policies to individuals and businesses
disability insurance
This provides payments to employees who are not able to work for an extended period due to serous illness or injury.
beneficiaries
Life insurance payments are made to people named in the policy known as what?
commercial property insurance
Businesses buy this to cover property losses from events such as floods, fire, and earthquakes.
intellectual property
This refers to technical knowledge or creative work.
A risk that can result in financial loss
What is an economic risk?
(1) personal risk�which can result in personal losses such as health and personal well-being; (2) property risk�which can lead to loss of personal or business property; and (3) liability risk�which relates to harm or injury to other people or their proper
Name and define the three categories of economic risk.
The premiums collected from policyholders make up the funds from which an insurance company pays for claims. The company invests these premiums. The additional amount earned from these investments allows the company to make a profit and to cover the costs
How do insurance companies make a profit?
(1) carry out business in many countries, (2) offer a range of products, (3) involve local business partners, and (4) employ local management.
What can businesses do to reduce international business risk?
Property rights are the exclusive rights to possess and use property and its profits. This excludes everyone else from interfering with the use of the item.
What are property rights?
no
Is it possible to avoid all risk with careful planning?
speculative
Investing money in the stock market is what type of risk, it offers the chance either to gain or to lose?
uninsurable risk
If a risk is not common or if it is impossible to predict the amount of loss that could be suffered it is what?
assumed by the insurance company
If a business transfers risk is the risk eliminated or is it assumed by the insurance company?
policyholder
The person or company buying an insurance policy.
group insurance
When a large number of employees and their family members are covered under one policy
cause
Vehicle insurance pays medical costs for those injured if people driving the company's vehicles _________an accident.
broaden
A way for businesses to reduce risk is to ______________ its product line because lower than expected sales of one item will not result in complete failure for the company.
locals
When expanding into the international marketplace it lowers a business' risk to hire who?
personal risk
A risk that involves a possible injury to your health would be classified as what?
gain
A pure risk offers no opportunity for what?
loss from theft
This is an example of controllable risk.
avoiding
When choosing not to complete a risky activity you are said to be ________________ the risk.
channel members
A business can transfer the risk of product damage by using other _________________ to store and distribute the products.
The conditions to which the insurance company and policyholder have agreed.
What information does an insurance policy state?
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
Independent insurance agents
__________________ usually sell many kinds of policies from a number of different companies.
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
life insurance
This 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
business interruption insurance
This provides compensation for ongoing business expenses that occur if a business has a temporary shutdown due to a fire, flood, or other major problem
uninsurable
Economic conditions, consumer demand, and competitors' actions would be risks faced by businesses that are _____________.
Executives must not reveal to employees that certain aspects of business operations are not fully insured.
This is an example of a POOR way for a business to manage uninsurable risks.
involve local business partners and employ local management.
To reduce international business risk, a business should
music, movies, books
These are examples of intellectual property.
patent
The exclusive right of an inventor to make, sell, and use a product or process
counterfeiting
The illegal use of intellectual property, patents, trademarks, and copyrights
loss
Risk can be thought of as the possibility of incurring a _________.
liability risk
This relates to harm or injury to other people or to their property because of your actions.
noneconomic risks
These may result in inconvenience or embarrassment but do not have a financial impact.
uncontrollable risk
A risk that cannot be reduced by your actions
insurance
This exchanges the uncertainty of a possible large financial loss for a certain smaller payment.
assuming the risk
When you complete a risky activity with full responsibility you are doing what?
claim
A policyholder's request for payment for a loss that an insurance policy covers.
insurance agent
The person who represents an insurance company and sells policies to individuals and businesses
disability insurance
This provides payments to employees who are not able to work for an extended period due to serous illness or injury.
beneficiaries
Life insurance payments are made to people named in the policy known as what?
commercial property insurance
Businesses buy this to cover property losses from events such as floods, fire, and earthquakes.
intellectual property
This refers to technical knowledge or creative work.
A risk that can result in financial loss
What is an economic risk?
(1) personal risk�which can result in personal losses such as health and personal well-being; (2) property risk�which can lead to loss of personal or business property; and (3) liability risk�which relates to harm or injury to other people or their proper
Name and define the three categories of economic risk.
The premiums collected from policyholders make up the funds from which an insurance company pays for claims. The company invests these premiums. The additional amount earned from these investments allows the company to make a profit and to cover the costs
How do insurance companies make a profit?
(1) carry out business in many countries, (2) offer a range of products, (3) involve local business partners, and (4) employ local management.
What can businesses do to reduce international business risk?
Property rights are the exclusive rights to possess and use property and its profits. This excludes everyone else from interfering with the use of the item.
What are property rights?