ch 1 business risk

Entrepreneurs...

• are employees

• work for themselves

• are at risk to be fired

What is a reward of being an entrepreneur?

• making a bad decision

• working on your own timeline

• Not understanding all the aspects of business

______ is the chance of losing something

• reward

• risk

• reality

• serial

Credit card fraud is an example of:

• artificial risk

• natural risk

• human risk

• economic risk

Risk management is taking action to prevent or reduce the possibility of loss to your business.

• true

• false

Which of the following is NOT one of the basic strategies for dealing with risk?

• avoid the risk

• assume the risk

• deny the risk exists

• transfer the risk to another party

It is not possible for a business to avoid all risks.

• true

• false

The insurance agent who sells you the policy will be involved in processing your claim should you ever need to collect on your policy.

• true

• false

Speculative risks are uninsurable.

• true

• false

Investing in the stock market is an example of a pure risk.

• true

• false