Entrepreneurship Ch 11

Taking action to prevent or reduce the possibility of loss to your business

Covers company’s legal responsibility for the harm it may cause to others 

All of the following are steps that should be taken in a risk assessment EXCEPT

Caused by the actions of individuals

Caused by acts of nature

Which of the following is NOT one of the basic strategies for dealing with risk?

Insurance agents

A pure risk faced by a large number of people and the amount of the loss is predictable

A payment made to an insurance company to cover the cost of insurance

When a retail business allows its customers to buy merchandise now and pay for it later

Looking at all aspects of your business and determining the risks you face

A business probably could not buy insurance to cover risks associated with the following EXCEPT

The chance to gain or lose from the event or activity

A risk that can be reduced or avoided by actions you take

When one business allows another business to buy now and pay later it is called

Occur because of changes in business conditions

Shoplifting is an example of

Human actions have no effect on

The chance of loss but no opportunity for gain is called

A machine called an electronic credit authorizer