Business Risk and Management Quiz

What is business risk?

• The chance of making a profit

• The possibility of losing money or facing unexpected problems

• A guarantee of success

• A type of insurance

What does risk management involve?

• Ignoring potential problems

• Identifying, assessing, and prioritizing risks

• Only focusing on profits

• Hiring more employees

Which of the following is NOT one of the four types of risks an entrepreneur should anticipate?

• Financial risk

• Strategic risk

• Seasonal risk

• Operational risk

What type of risk can arise from employee actions?

• Market risk

• Compliance risk

• Environmental risk

• Technological risk

What does product obsolescence mean?

• A product becoming outdated or no longer useful

• A product being sold at a discount

• A product being recalled

• A product being improved

Which of the following is a way to reduce the risk of loss from external theft?

• Leaving doors unlocked

• Installing security cameras

• Ignoring security measures

• Storing cash in plain sight

What does OSHA stand for?

• Occupational Safety and Health Administration

• Office of Safety and Health Advice

• Organization for Safe Health Activities

• Office of Safety and Hazard Assessment

What is the most common way to transfer risk?

• Ignoring it

• Buying insurance

• Taking more risks

• Reducing expenses

Which type of policy provides property and liability coverage for small businesses?

• Homeowners insurance

• Business owner's policy (BOP)

• Life insurance

• Auto insurance

When is a surety bond typically required?

• When starting a new business

• When a contractor is hired for a project

• When applying for a loan

• When selling products online