Entrepreneurship - Chp. 12: Risk Mgmt.

_____ is the possibility of some kind of loss.

• bounced check

• premium

• risk

• trade credit

_________ risks are those caused by the actions of individuals, such as employees or customers. Examples include shoplifting, employee theft, robbery, credit card fraud, and bounced checks.

• human

• natural

• economic

______ risks are caused by acts of nature. Examples are storms, fires, floods, and earthquakes. The occurrence of any of these could bring about tremendous loss to a business.

• human

• economic

• natural

_______ risks occur because of changes in business conditions. Examples include political instability, increased competition, and inflation.

• human

• natural

• economic

______ ______ is taking action to prevent or reduce the possibility of loss to your business. You can avoid risk, assume risk, or transfer risk.

• insurance programming

• workers' compensation

• risk management

______ ________involves looking at all aspects of your business and determining the risks you face.

• risk management

• risk assessment

• credit check

• workers' compensation

_______is the act of knowingly taking items from a business without paying.

• robbery

• employee theft

• shoplifting

• credit card fraud

A ________ presents the chance of loss but no opportunity for gain.

• insurable risk

• speculative risk

• controllable risk

• pure risk

A _______ offers you the chance to gain as well as lose from the event or activity.

• pure risk

• speculative risk

• controllable risk

• insurable risk

A __________is one that can be reduced or possibly even avoided by actions you take.

• pure risk

• speculative risk

• controllable risk

• insurable risk