Ch 16 Key Terms

Civil Rights Act of 1991

A series of acts by Congress that prohibit discrimination on the basis of race, color, religion, sex, or national origin.

deductible

An amount of loss that will not be paid by an insurance company.

fidelity bonds

Bonds, also called dishonesty bonds, that repay employers for losses caused by dishonest or negligent employees.

Equal Employment Opportunity Commission (EEOC)

A commission established to enforce the provisions of the Equal Employment Opportunity Act.

insurance

A contract between two or more parties in which one party agrees, for a fee, to assume the risk of another.

co-insurance

A contract stipulation that requires a policyholder to carry insurance in an amount equal to a stated minimum percentage of the market value of the property insured.

Occupational Safety and Health Administration (OSHA)

A government agency created to enforce safety in the workplace.

internal control

A set of rules and procedures that work to limit the opportunity for employee theft or malfeasance.

separation of duties

A type of internal control that separates the physical control of an asset from the person accounting for that asset.

Age Discrimination in Employment Act (ADEA)

An act of Congress that makes it illegal to discriminate against people who are older than 40 years of age.

Rehabilitation Act of 1973

An act of Congress that provides training for workers who are injured on the job.

Americans with Disabilities Act (ADA) of 1990

An act of Congress that requires that businesses make provisions for access for people with disabilities.

joint venture

An agreement between two or more entities to pool resources in order to complete a project.

surety bonds

An agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.

coverages

Contractual provisions of insurance policies that specify what risks the insurance company is assuming.

key employees

Employees whose experience and skills are critical to the success of a business.

buyout insurance

Insurance that provides funds to purchase the ownership position of an owner who is disabled or deceased.

regulation of the workplace

Laws and governmental rules that limit the freedom of business owners to manage their businesses as they please.

tax codes

Laws and regulations that specify the requirements of taxation.

employee theft

Misappropriation of business property by employees of that business.

protected classes

States of being that are expressly prohibited from suffering discrimination: race, color, religion, sex, national origin, gender, age, or disability.

insurable value

The amount of an asset for which a company will write an insurance policy.