Project 2:LAP-Lose, Win, or Draw

Question 1

Financial loss from investing time & money to agree with accounting standards is an example of:

Accepted Answer

Regulatory and political issues

Question 2

People who go into business know that it may not succeed.This is referred as business

Accepted Answer

risk

Question 3

Reducing or removing risks by shifting the risk to another is referred to as ____risk

Accepted Answer

transferring

Question 4

Agreements such as guarantees,surety bonds,&leases are examples of business risks handled by

Accepted Answer

transfer

Question 5

Carefully selecting goods or services to sell is a example of handling business risks by__ risk

Accepted Answer

preventing or controlling

Question 6

Mgmt has annual meeting in one city rather than another due to its crime.This is __ the risk.

Accepted Answer

avoiding

Question 7

Which of the following is an example of a business risk that cannot be covered by insurance

Accepted Answer

Increase in interest rates

Question 8

What category of business risk includes production problems and incompetent employees?

Accepted Answer

operational

Question 9

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

Accepted Answer

retain

Question 10

The general classifications of business risks are

Accepted Answer

hazard, operational, strategic, and financial

Question 11

Businesses can protect themselves from the risk associated with lost shipments by

Accepted Answer

purchasing transportation insurance

Question 12

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

Accepted Answer

retaining

Question 13

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

Accepted Answer

operational

Question 14

Careful screening of credit customers is an example of handling business risks through

Accepted Answer

prevention

Question 15

A rival’s product reduces sales of your company’s,your company is experiencing:

Accepted Answer

competition

Question 16

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

Accepted Answer

hazard

Question 17

A store customer tripped over a plant,fell,sued store for damages.This is an example of___ risk

Accepted Answer

hazard

Question 18

Having well-planned building & effective staff training are ways a business can _business risks

Accepted Answer

prevent or control

Question 19

Requiring a contractor to purchase a surety bond is example of handling risk by_____ the risk

Accepted Answer

transferring

Question 20

Which of the following is a pure business risk

Accepted Answer

Robbery

Questions 20