Lose Win or Draw LAP Quiz

1. Potential losses that businesses face are called

• 1. business risks.

• 1. liabilities.

• 1. insurable risks.

• 1. uninsurable risks.

1. The main reason people are willing to face possible business risks is

• 1. jobs.

• 1. profit.

• 1. power.

• 1. security.

Some businesses sell products that become unfashionable or outdated if they are not sold promptly. This creates a business risk called

• insurance

• exchange.

• obsolescence.

• competition.

1. A retail gift shop offers free gift wrapping to its customers. What category of economic business risk is this for another gift shop located on the same street?

• 1. Business conditions

• 1. Obsolescence

• 1. Government intervention

• 1. Competition

1. All business risks can be categorized as either

• 1. demographic or psychographic.

• 1. certain or uncertain.

• 1. avoidable or unavoidable.

• 1. pure or speculative.

1. The personnel office of a business carefully checks the background and references of its job applicants. This is an example of handling business risks through

• 1. prevention.

• 1. retention.

• 1. avoidance.

• 1. transfer.

1. One way a business can transfer the risk of losses due to fire or destruction is by purchasing __________ insurance.

• 1. transportation

• 1. property

• 1. liability

• 1. personal injury

1. An example of an uninsurable business risk is losses caused by

• 1. personal injury.

• 1. employee theft.

• 1. drops in sales volume.

• 1. damage to shipments.

1. A type of insurance that protects the owner of a business from loss when employees or customers are injured on the premises is called __________ insurance.

• 1. transportation

• 1. major medical

• 1. disability

• 1. liability

1. The type of business organization that offers its owners the most protection from risk is a

• 1. sole proprietorship.

• 1. public corporation.

• 1. general partnership.

• 1. government agency.