Entrepreneurship Chapter 12

Question 1

A credit card offered by a home furnishings center is an example of an installment loan.

Accepted Answer

False

Question 2

If there is risk that a loss will occur & the amount of the loss can't be predicted the risk is

Accepted Answer

uninsurable

Question 3

Which of the following is not a strategy for dealing with a global risk?

Accepted Answer

conduct business in only 1 country to minimize risk

Question 4

Businesses can avoid all possible risks by purchasing insurance.

Accepted Answer

False

Question 5

Risk is the possiblity of some kind of loss.

Accepted Answer

True

Question 6

A speculative risk is classified as uninsurable.

Accepted Answer

True

Question 7

All injuries that occur at work are covered by workers' compensation insurance.

Accepted Answer

False

Question 8

Conducting a risk assessment involves all of the following actions except

Accepted Answer

communicate your plan

Question 9

When you extend credit to a customer, you are guaranteed that you will receive payment.

Accepted Answer

False

Question 10

Which would cover losses your business incurred as a result of selling a faulty product?

Accepted Answer

liability protection

Question 11

Which type of insurance would cover the cost to repair your office building damaged by fire?

Accepted Answer

property insurance

Question 12

If you are leasing a building you don't need to carry renter's ins. because the owner has ins.

Accepted Answer

False

Question 13

Which of the following is not a risk associated with doing business in another country?

Accepted Answer

all are risks

Question 14

Credit Card fraud is an example of an economic risk.

Accepted Answer

False

Questions 14