EC-003 Posttest
when a rivals product on the market reduces sales of your company's product, your company is experiencing strategic risk caused by
competition
which of the following is an example of a business risk that can not be covered by insurance:
increase in interest rates
what category of business risk includes production problems and incompetent employees
operational
having well-planned buildings and providing effective employers training are ways that a business can _______ business risks
prevent or control
Carefully selecting goods or services to sell is an example of handling business risks by _______________ the risk.
preventing or controlling
careful screening of credit customers is an example of handling business risks through
prevention
if a risk is small in terms of money? a business may decide to _______ the risk
retain
When a business keeps a risk because management is unaware of it, the business is _______ the risk.
retaining
people who go into business know that the business may not succeed. Thus possibility is referred to as business
risk
which of the following is a pure business risk
robbery
contractual agreements such as guarantees, surety bonds, and leases are examples of business risks being handled through
transfer
Requiring a contractor to purchase a surety bond is an example of handling business risk by _______ the risk.
transferring
the act of reducing or removing risks by shifting the risk factor to another person of business is referred to as _____ risk
transferring
management decides to hold its annual meeting in one of the U.S city rather than another because of crime in gang city. This is an example of ______ the risk
avoiding
Hurricane that destroys a business is a(n) example of a ______ risk
hazard
the general classification of business risk are
hazard. operational, stragetic, and financial
A garden store customer tripped over plant? fell, and sued the store for damages. This is an example example of a(n) ________ risk
hazrad
A union strike that stops production at a manufacturing plant is a(n) __________ risk.
operational
business can protect themselves from the risk associated with lost shipments by
purchasing transportation insurance
financial loss from investing time and money to comply with accounting standards is an example of which strategic risk?
regulatory and political issues