2.05 Warm Up

When a business keeps a risk because management is unaware of it, the business is __________ the risk.

If expenses are greater than income, there’s no

A union strike that stops production at a manufacturing plant is a(n) __________ risk.

Which of the following is a situation in which people are out of work and can’t afford “extra” purchases:

Contractual agreements such as guarantees, surety bonds, and leases are examples of business risks being handled through

The money spent to run a business is called

The general classifications of business risks are

A hurricane that destroys a business is an example of a(n) __________ risk.

Which of the following is a general benefit profit provides:

Carefully selecting goods or services to sell is an example of handling business risks by __________ the risk.

The amount of money paid for raw materials and products sold is called

A garden store customer tripped over a plant, fell, and sued the store. This is an example of a(n) __________ risk.

If a risk is small in terms of money, a business may decide to __________ the risk.