Business Risk

An activity to make or create new object for our needs

• distribution

• production

• consumption

• producer

Dishonesty of employees is the ------- type of cause of business risk

• Human

• Natural

• Economic

• Government policies

Risk is the result of...

• Certainties

• Uncertainty

• Both a and b

• None

Which one of the following is not a nature of business risk?

• Risk is unavoidable.

• Risk is the result of uncertainty.

• Profit is the consideration of risk taking.

• All are correct

The act of reducing or removing risks by shifting the risk factor to another person or business is referred to as __________ risk.

• transferring

•   retaining

•   avoiding

•   controlling

Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of __________ the risk.

Correct A

• avoiding

•   retaining

•   preventing or controlling

    transferring

•   transferring

Contractual agreements such as guarantees, surety bonds, and leases are examples of business risks being handled through

• transfer.

   

• management.

   

• avoidance.

   

• prevention or control.

When a business keeps a risk because management is unaware of it, the business is __________ the risk.

• retaining

   

• avoiding

•   preventing or controlling

   

• transferring

Requiring a contractor to purchase a surety bond is an example of handling business risk by __________ the risk.

• transferring

   

• retaining

•   reducing

•   preventing

If a risk is small in terms of money, a business may decide to __________ the risk.

• retain

•   transfer

•   avoid

•   control