Tara McDonald
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High School Principles of Business Quiz on POB 5.02 Review, created by Tara McDonald on 02/20/2017.

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Tara McDonald
Created by Tara McDonald about 7 years ago
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POB 5.02 Review

Question 1 of 17

1

Which represents a natural risk for the owner of a delivery service?

Select one of the following:

  • snowstorm

  • accident

  • rising prices

  • government intervention

Explanation

Question 2 of 17

1

A business selects goods or services to sell. Which type of risk is this business using?

Select one of the following:

  • transferring risk

  • controlling risk

  • bypassing risk

  • avoiding risk

Explanation

Question 3 of 17

1

Which is an example of a speculative business risk?

Select one of the following:

  • A special promotion fails to increase sales.

  • A supplier's shipment is lost in transit.

  • A cashier gives unauthorized discounts to friends.

  • A customer is injured at a business and sues the company.

Explanation

Question 4 of 17

1

One way a business can reduce the risk of accidents in the workplace is by providing its employees with:

Select one of the following:

  • safety training.

  • electronic data interchange (EDI).

  • supply manuals.

  • weight-loss programs.

Explanation

Question 5 of 17

1

Many businesses use a variety of security precautions in order to protect the businesses from:

Select one of the following:

  • natural disasters.

  • the risk of theft.

  • economic depressions.

  • threat of foreclosure.

Explanation

Question 6 of 17

1

Sam works for a construction company. Yesterday he forgets to put on his hard hat prior to entering the construction site. Sam is said to be:

Select one of the following:

  • In compliance

  • Out of compliance

  • Safe

  • Ignorant

Explanation

Question 7 of 17

1

Bob works at the sawmill. While operating the electric saw, Bob notices one of the bolts has become loosened. He stops his work immediately and reports the incident to his site manager because of the:

Select one of the following:

  • Security risk

  • Chemical hazard

  • Non-economic risk

  • Imminent Danger

Explanation

Question 8 of 17

1

A local food company filed an insurance claim to compensate employees who lost personal belongings in a company fire. This is an example of which type of insurance risk?

Select one of the following:

  • Economic

  • Pure

  • Uncontrollable

  • Uninsurable

Explanation

Question 9 of 17

1

Which is an example of uninsurable risks?

Select one of the following:

  • FedEx covers property damaged by its drivers.

  • Kroger Grocery Store has liability coverage.

  • FedEx's competitors are now picking up packages from residential homes.

  • Tessa is receiving compensation after being injured at work.

Explanation

Question 10 of 17

1

A company chooses not to carry a line of products that appears to be especially easy to shoplift. Risk from not carrying the product line is:

Select one of the following:

  • Avoided

  • Reduced

  • Transferred

  • Retained (Assumed)

Explanation

Question 11 of 17

1

When it rains, Walmart place rubber mats in the entryways of their doors. By placing the mats during bad weather, Walmart is:

Select one of the following:

  • Retaining the risk

  • Avoiding the risk

  • Transferring the risk

  • Reducing the risk

Explanation

Question 12 of 17

1

It would cost a cosmetic company at least $1.49 for each bottle in order to produce a new line of shampoo. The company decided to continue with its original production instead of adding the new product. How did the company handle the potential risks?

Select one of the following:

  • Assume

  • Avoid

  • Transfer

  • Insure

Explanation

Question 13 of 17

1

Real property is:

Select one of the following:

  • Jewelry

  • Land or anything attached to it

  • Property that is inside the home

  • Cash

Explanation

Question 14 of 17

1

ABC Company has major damage to the facility due to an electrical fire. They are forced to close their operations down for two months while the building is being repaired. What type of insurance covers this type of damage?

Select one of the following:

  • Personal Property Insurance

  • Workers Compensation Insurance

  • Business Interruption Insurance

  • OSHA Insurance

Explanation

Question 15 of 17

1

Suzanne wants a personal insurance policy that will include features of basic and major medical health insurance, dental care, and vision care. What type of policy does she need?

Select one of the following:

  • Comprehensive

  • Surgical

  • Vision

  • Hospital

Explanation

Question 16 of 17

1

Randle's boss had insurance that would provide payments to him while he was at home recovering from a back injury that occurred at work. What type of insurance does Randle's boss have?

Select one of the following:

  • Workers Compensation

  • Liability Coverage

  • Business Interruption

  • Major Medical

Explanation

Question 17 of 17

1

Sally works for Nash-Rocky Mount Schools. She is 36 years old and decides that she needs life insurance. Other than covering her funeral expenses, she would like to have the option to be able to use the money she invests before she dies on purchasing expensive items like vacations, college, and a new home. She only has this option if she invests in what type of life insurance?

Select one of the following:

  • Term life insurance

  • 401K

  • Permanent life insurance

  • Workers Compensation

Explanation