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WorksheetsPBMF 14.1 Understanding Risk
Total questions: 16
Worksheet time: 20mins
(a) is the possibility of loss, damage, or injury.
Insurance is a (a) service used to protect against (b) .
The potential that the target market for new goods or services is much less than originally projected.
natural risk
market risk
economic risk
human risk
A (a) risk is a situation caused by acts of nature.
Risk management is the process of (a) risk and finding ways to (b) or manage (c) .
Which of the following is NOT one of the four basic types of risk?
Natural
Economic
Market
Controllable
(a) risks are situations that cannot be avoided, but can be minimized by purchasing insurance or creating a risk management plan.
Match each type of risk with the correct description.
situation caused by acts of nature
natural risk
target market for new goods or services is much less than projected
market risk
situation that occurs when business activities suffer due to changes in the economy
economic risk
negative situation caused by the actions of people
human risk
Which of the following is one of the basic ways to manage risk?
avoidance
assumption
adherence
reliance
A pure risk is a risk with a possibility of (a) , but (b) possibility of gain.
Uncontrollable risks are situations that (a) be predicted or covered by purchasing (b) .
Match the following
the possibility of losing money, property, or other assets as a result of legal proceedings
liability risks
affect personal or business property
property risks
directly affect an individual, such as illness or disability
personal risks
Organize the examples of risk into the correct categories.
illness
pollution
employee discriminition
_____ is the most common way of transferring risk.
An uninsurable risk is one that an insurance company will (a) . In this case, businesses must assume (b) .
A business may choose to _____ by saving money to cover the financial losses of some risks. They often do this by setting up a bank account and automatically depositing into the account each month to cover a future loss.
self-insure
increase profits
cover debts
avoid penalities
