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2-11 Risk Factors in Business Quiz Business U

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

What is the formal proceeding in the court system that helps individuals and businesses eliminate their debts?

a)

Capitalism

b)

Bankruptcy

c)

Inflation

d)

Insurance

2.

Which economic system involves privately-owned companies driven by a profit-motive?

a)

Socialism

b)

Capitalism

c)

Communism

d)

Feudalism

3.
  1. The risk of a negative outcome in one's career due to action or inaction, for example, loss of income and lack of certain types of experiences.

a)

Financial Risk

b)

Market Risk

c)

Career Risk

d)

Pure Risk

4.

What is the risk that financial stakeholders will lose money?

a)

Career Risk

b)

Financial Risk

c)

Industry Risk

d)

Cyber Security

5.

What is the chance that factors within an industry drag down its overall performance?

a)

Industry Risk

b)

Career Risk

c)

Financial Risk

d)

Cyber Security

6.

What term describes the increase in the general level of prices in an economy?

a)

Deflation

b)

Inflation

c)

Stagnation

d)

Recession

7.

What is a contractual agreement where the insurer collects a premium for future loss reimbursement?

a)

Bankruptcy

b)

Insurance

c)

Capitalism

d)

Interest Expense

8.

What is the money spent to pay for borrowed money, calculated as the interest rate times the outstanding principal?

a)

Inflation

b)

Insurance

c)

Interest Expense

d)

Bankruptcy

9.

Which of the following is an example of market risk?

a)

Earthquake

b)

Inflation

c)

Phishing

d)

Product defect

10.

What is a natural disaster?

a)

A market risk

b)

A type of malware

c)

An event like a tornado or flood

d)

A financial projection

11.

What do phishing attacks aim to do?

a)

Improve network security

b)

Fool people into clicking on malicious links

c)

Enhance user experience

d)

Increase website traffic

12.

What is product risk specific to?

a)

A company's market strategy

b)

A company's product quality and supply

c)

A company's financial projections

d)

A company's management decisions

13.

What is pure risk also known as?

a)

Absolute risk

b)

Speculative risk

c)

Management risk

d)

Market risk

14.

What is risk mitigation?

a)

A process to enhance opportunities

b)

A type of market risk

c)

A financial estimate

d)

A natural disaster

15.

What is speculative risk?

a)

When only loss is possible

b)

When only gain is possible

c)

When gain, loss, or no change is possible

d)

When only no change is possible

16.

What does a worst-case scenario consider?

a)

The most severe possible outcome

b)

The best possible outcome

c)

The most likely outcome

d)

The least severe outcome

17.
  1. Predicting outcomes of a decision by creating and changing a certain range of variables and calculating how changes in one variable affect the outcome of the whole.

a)

Proforma

b)

Sensitivity Analysis

c)

Recession

d)

Phishing

18.
  1. This occurs when a country experiences temporary economic decline, usually measured as two consecutive quarters of decline in GDP.

a)

Recession

b)

Worst-Case Scenario

c)

Natural Disaster

d)

Malware

19.

This type of attack “kidnaps” a person’s or organization’s databases and holds all of their information hostage.

a)

Malware

b)

Recession

c)

Phishing

d)

Ransomeware

20.
  1. An estimate/projection of future revenues, expenses, net income, and capital needed to fund the company’s operations.

a)

Recession

b)

Proforma

c)

Market Risk

d)

GDP

21.

The protection of networks, devices, and data from unauthorized access or criminal use, and the practice of ensuring the confidentiality, integrity, and availability of information.

a)

Career Risk

b)

Financial Risk

c)

Cyber Security

d)

Proforma

22.

Which Type of business risk is this?

Increase of interest rate on a business loan

a)

Strategic risk

b)

Financial risk

c)

Operational risk

d)

regulatory risk