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FP II Unit 1 1.01

Total questions: 12

Worksheet time: 36mins

Name
Class
Date
1.

What can risk managers do to ensure the successful launch of a new product?

a)

act quickly to beat the competition

b)

evalate potiential gains and losses of the event

c)

develop fail-proof strategies for the calendar year

d)

ignore issues the company has encountered in the past

2.

What category of risk typically has the most impact on the ability of a business to reach planned goals and objectives?

a)

financial

b)

hazard

c)

operational

d)

strategic

3.

 

A good source of information about the retroactive risks of a business would be a/an:

a)

.

environmental scan

b)

purchasing manager

c)

business incident log

d)

local weather forcast

4.

The term risk is used in business to refer to the

a)

chances that consumers take

b)

possibility or probability of loss

c)

mistakes that employees make

d)

unontrollable possibility of danger

5.

Technological innovations can increase the strategic risk for business by:

a)

causing interest rate growth

b)

making some products obsolete

c)

eliminating the convenience of buying in person

d)

decreasing the supply of people seeking employment

6.

Which is often used to measure and rate potential risks

a)

an environmental scan

b)

transference strategies

c)

an impac/probability chart

d)

contingency and fallback plans

7.

An earthquake is an example of which type of risk?

a)

operatinal

b)

pure

c)

speculative

d)

strategic

8.

The two dimensions of risk are

a)

impact and avoidance

b)

probability and impact

c)

probability and avoidance

d)

mitigation and acceptance

9.

Which statement accurately describes the nature of prospective risks

a)

They are typically more common than retroactive risks

b)

They are usually easier to identify than retroactive risks

c)

They have failed to happen before but could occur in the future

d)

They have occurred in the past so they will fail to reoccur in the future.

10.

Which is an example of a hazard risk

a)

competitive advantage

b)

product shortages

c)

tornadoes

d)

inflation

11.

Poor product development, unreliable manufacturing equipment, and product shortages are examples of which type of risk

a)

financial

b)

hazard

c)

operational

d)

strategic

12.

An example of an internal financial risk is

a)

credit downgrades

b)

consumer buying power

c)

improper budgeting practices

d)

foreign exchange rate changes