Chapter 12

Types of risk include human risk, natural risk, and economic risk.

• True

• False

It is impossible for a retail business owner to prevent or reduce shoplifting.

• True

• False

The only way to prevent employee theft is to install surveillance systems.

• True

• False

If your business experiences a loss that is covered by insurance, you will receive a premium from the insurance company in the dollar amount of your loss.

• True

• False

Workers’ compensation consists of payments to workers who are injured on the job, and businesses are required by law to provide it.

• True

• False

A company’s credit policies should specify to whom credit will be extended, what products may be purchased on credit, and what the terms of the credit will be.

• True

• False

Extending credit to customers will help increase both sales and profits.

• True

• False

If your business does not stay up to date in technology trends, you may lose business to your competition.

• True

• False

Business losses that result from changes in economic conditions are generally considered uninsurable losses.

• True

• False

Risk management may involve avoiding risk, transferring risk, or assuming risk.

• True

• False