2.05 Warm Up

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

The general classifications of business risks are

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

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

If expenses are greater than income, there’s no

Which of the following is a general benefit profit provides:

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

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

The money spent to run a business is called

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

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

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

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