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HELLO FM III STUDENTS

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

It requires the insurer to provide funds to pay for specified losses in exchange for receiving a premium from the purchaser at the inception of the contract.

a)

Insurance

b)

Retention

c)

Other contractual risk transfers

d)

Hedging

2.

Actions that primarily influence the severity of losses that do not occur are often.

a)

Loss Prevention

b)

Loss Prevention Method

c)

Loss Reduction Method

d)

Loss Reduction

3.

What are the (4) Four Methods of Financing Losses?

a)

Hedging

b)

Retention

c)

Retained Losses

d)

Insurance

e)

Other contractual risk transfers

4.

What are the (3) three Major Risk Management Methods?

a)

Internal Risk Reduction

b)

Loss Control

c)

Risk Reduction

d)

Loss Financing

5.

It is commonly involve decisions by firms to invest resources in order to increase business value.

a)

Loss Financing Activities

b)

Direct Losses

c)

Indirect Losses

d)

Loss Control and Internal Risk Reduction

6.

Which of the following is included in Direct Losses?

a)

Injury and illness to employees

b)

Bankruptcy costs

c)

Damage to Asset

d)

Liability claims defense costs

7.

It can produce more accurate estimate or forecasts of future cash flows, thus reducing variability of cash thus around the predicted value.

a)

Investment in Information

b)

Risk Avoidance

c)

Diversification

d)

Internal Risk Reduction

8.

Loss Financing is sometimes called "Risk Financing".

a)

False

b)

True

c)

Maybe

d)

All of the above

9.

Choose one only!

a)

Lights on

b)

Lights off

10.

Pag matutulog po! 🤭 PEACE ✌️

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