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WorksheetsIntro to Business: Chapter 14 Review
Total questions: 30
Worksheet time: 16mins
Name
Class
Date
1.
With careful planning, it is possible to avoid all risk.
a)
True
b)
False
2.
When you invest money in the stock market, you are taking a pure risk.
a)
True
b)
False
3.
If a risk is uncommon or it is impossible to predict the amount of loss that could be suffered, it is termed uninsurable risk.
a)
True
b)
False
4.
If a business transfers a risk, that means that no one assumes the risk; it is simply eliminated.
a)
True
b)
False
5.
The person or company buying an insurance policy is called the insured.
a)
True
b)
False
6.
Businesses cannot insure many of the risks they face.
a)
True
b)
False
7.
A risk that involves a possible injury to your health would be classified as a
a)
property risk
b)
liability risk
c)
personal risk
d)
non-economic risk
8.
A pure risk
a)
offers no opportunity for gain
b)
is uncontrollable
c)
is uninsurable
d)
all of the above are true
9.
Which of the following is a controllable risk?
a)
a sudden hailstorm
b)
loss from theft
c)
a lightning strike
d)
a flash flood
10.
If you choose not to complete a risky activity, you are said to be __ the risk.
a)
avoiding
b)
transferring
c)
assuming
d)
exiting
11.
A business can transfer the risk of product damage by
a)
delivering a product itself
b)
using other channel members to store and distribute products
c)
simply deciding to do nothing because a problem is very unlikely to occur
d)
all of the above
12.
An insurance policy states the condition to which
a)
the insurance co. & the policyholder have agreed
b)
the insurance co. & the insurer have agreed
c)
the insurer & the insured have agreed
d)
the policyholder & the insurer have agreed
13.
The person or business for which an insurance co. assumes the risk is called the
a)
insurer
b)
policyholder
c)
insured
d)
claimant
14.
The amount a policyholder must pay for insurance coverage is a
a)
claim
b)
premium
c)
deductible
d)
ransom
15.
The three major categories of business insurance are
a)
personnel, property, & economic conditions
b)
customers, employees, & vendors
c)
personnel, property, & operations
d)
technology changes, consumer demand, & economic conditions
16.
Which of the following pays the amount of an insurance policy upon the death of the insured.
a)
disability insurance
b)
life insurance
c)
health insurance
d)
workers' compensation
17.
A system of insurance set up by the state law that pays employees who are injured on the job is called
a)
liability insurance
b)
group insurance
c)
retirement insurance
d)
workers' compensation
18.
To reduce international business risk, a business should
a)
offer only a small number of products
b)
involve local business partners & employ local management
c)
carry out business in only a few countries
d)
all of the above are true
19.
Which of the following is NOT an example of intellectual property?
a)
music
b)
books
c)
movies
d)
stereos
20.
The exclusive right of an inventor to make, sell, and use a product or process is called a
a)
patent
b)
trademark
c)
copyright
d)
claim
21.
The illegal use of intellectual property, patents, trademarks, and copyrights is known as
a)
phishing
b)
hacking
c)
counterfeiting
d)
forgoing
22.
Risk can be thought of as the possibility of incurring a(n) ___.
a)
loss
b)
claim
c)
liability
d)
disability
23.
__ risks may result in inconvenience or embarrassment but do not have a financial impact.
a)
non-economic
b)
liability
c)
speculative
d)
uncontrollable
24.
A(n) ___ offers the chance to either gain or to lose.
a)
speculative
b)
liability
c)
non-economic
d)
uncontrollable
25.
A(n) __ risk relates to harm or injury to other people and/or their property because of your actions.
a)
liability
b)
non-economic
c)
speculative
d)
uncontrollable
26.
The amount a policyholder pays for insurance coverage is called a(n) ____
a)
premium
b)
claim
c)
beneficiary
d)
liability
27.
A risk that cannot be reduced by your actions is called a(n) __ risk.
a)
uncontrollable
b)
speculative
c)
liability
d)
non-economic
28.
When you ___ a risk, you complete a risky activity with full responsibility.
a)
assume
b)
claim
c)
speculate
d)
avoid
29.
Businesses buy ___ property insurance to cover property losses from events such as floods, fires and earthquakes.
a)
commercial
b)
liability
c)
health
d)
operations
30.
__ property refers to technical knowledge or creative work.
a)
intellectual
b)
premium
c)
capital
d)
non-economic
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