WorksheetsQuiz - Chapter 3 INS200
Total questions: 11
Worksheet time: 14mins
Name
Class
Date
1.
What is the main goal of risk control?
a)
To increase the risk level
b)
To minimize the frequency and severity of losses
c)
To maximize profit
d)
To eliminate all risks
2.
Which of the following is an example of loss prevention?
a)
Installing fire alarms
b)
Purchasing insurance
c)
Investing in high-risk assets
d)
Accepting all risks
3.
Which risk financing technique involves transferring the financial consequences of loss to another party?
a)
Risk avoidance
b)
Risk retention
c)
Risk transfer
d)
Risk acceptance
4.
Why is risk retention considered a viable option for minor risks?
a)
It is inexpensive and manageable
b)
It completely eliminates risk
c)
It generates profits
d)
It avoids legal complications
5.
What is the primary difference between risk control and risk financing?
a)
Risk control reduces loss frequency, while risk financing funds losses
b)
Risk control eliminates all risks, while risk financing avoids them
c)
Risk control increases risks, while risk financing reduces them
d)
Risk control generates revenue, while risk financing incurs losses
6.
Which of the following is a risk financing technique aimed at paying for retained losses?
a)
Risk reduction
b)
Risk pooling
c)
Self-insurance
d)
Risk elimination
7.
Risk (a) involves setting aside funds internally to cover potential losses.
8.
Loss (a) aims to reduce the severity of loss if it occurs.
9.
A (An) (a) policy involves pooling the risks of multiple policyholders to reduce the financial impact on an individual.
10.
Explain the significance of combining risk control and risk financing in a comprehensive risk management strategy.
4 lines
11.
Analyze the benefits and drawbacks of self-insurance as a risk financing technique.
4 lines
100 %
