Business Risks Quiz

What is the definition of business risk?

• The possibility of loss or gain when conducting business

• The possibility of gain when conducting business

• The possibility of loss when conducting business

• The possibility of neither loss nor gain when conducting business

Which of the following is an example of hazard risk?

• Competition

• Changing customer needs

• Natural disasters

• Obsolescence

What are operational risks?

• Events that result from employee actions and business activities

• Harm to people, property, or environment

• Overall business environment

• Directly influence cash flow

Which of the following is an example of strategic risk?

• Human errors

• Reputation damage

• Production problems

• Inflation

What are the two classifications of risk?

• Pure and speculative

• Hazard and operational

• Strategic and financial

• Internal and external

What is the best way to handle risk?

• Avoiding

• Transferring

• Retaining

• Preventing/controlling

Which of the following is an example of preventing/controlling risks?

• Safety procedures

• Contractual agreements

• Rental/lease agreements

• Insurance

What is the purpose of transferring risks?

• To prevent or control risks

• To increase or decrease spending

• To monitor what consumers want

• To shift the responsibility to another party

Why would a business retain risks?

• Believes there's a chance of return

• Unaware of the risks

• Underestimates the risk

• Feels that the risk is small

Which of the following is an example of property insurance?

• Transportation insurance

• Robbery or theft insurance

• Personal injury insurance

• Health insurance