Entrepreneurship Chapter 24

Vocab: The amount of money a policyholder pays for coverage

Vocab: Shifting risk to another party

A kitchen fire in a restaurant is a speculative risk

Vocab: A written contract between the insurer and the policy holder

An insurance policy typically covers the entire amount of a loss

In small companies, the business owner likely does all the purchasing

Vocab: Cost of replacing property at current prices

Vocab: Business that sells products to other businesses

Vocab: Protection provided by an insurance policy

Vocab: Buying materials, products, and services for business purposes

Vocab: Amount the insured must first pay before the insurance company is required to chip in

To manage pure risk means to avoid it or reduce it

Vocab: Choosing appropriate vendors to supply desired business goods and services

Experts recommend that property be insured for its cash value

Outside specialists are typically hired to be permanent employees

One component of managing risk is preparing for the worst

Your business should have insurance coverage before it even opens

Vocab: Discount given to resellers who are in the same trade, industry, or distribution chain as a vendor

Buyers planning a purchase should get price quotes from several vendors

Vocab: Act of purchasing

Vocab: Purchasing a large quantity from a vendor, typically to take advantage of a quantity discount

Providing a safe workplace is a legal and ethical responsibility

Vocab: Covers losses to employees due to job-related injury or illness