business chapter 12
risk management
Taking action to prevent or reduce the possibility of loss to your business
shoplifting
The act of knowingly taking items from a business without paying
exchange rate
The amount of one country's currency that can be traded for one unit of currency in another country is the ...
risk
The possibility of some kind of loss
Business interruption insurance
This insurance covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business.
trade credit
When one business allows another business to buy now and pay later
uninsurable
If there is a risk that a loss will occur and the amount of the loss cannot be predicted, the risk is ...
Business interruption insurance
It can cover the extra expense of operating out of a temporary location.
creditworthy
able to pay
bounced check
also called bad check
uncollectible accounts
an expense to the business; decrease net income
employee theft
can devastate your business financially
liability protection
insurance covers Lawsuit due to accident on premises
Renter's insurance
insurance covers contents owned by the renter inside a leased space are damage
life insurance
insurance covers death of owner
Business interruption insurance
insurance covers extra expense of operating out of a temporary location after fire has destroyed the building
liability protection
insurance covers lawsuit claiming that a defect in a product manufactured or sold caused bodily injury
Crime insurance
insurance covers roberry
Property insurance
insurance covers storm damage
Renter's insurance
insurance covers the contents owned by the renter inside the leased space
loan and credit card
2 basic forms offer the consumer credit
recovery
A ... plan will enable you to get back to business as quickly as possible after a disaster and help you continue to meet customer needs
bounced check
A check that the bank returns to the payee (the person or business to whom the check is made payable) bc the check writer's checking account has insufficient funds to cover the amount
Federal Employees' Compensation Act (FECA)
A law that provides for benefits to employees who have suffered work-related injuries or occupational diseases
premium
A payment to cover the cost of insurance
insurable risk
A pure risk faced by a large number of people and for which the amount of loss can be predicted
natural risks
A risk caused by acts of nature
human risk
A risk caused by the actions of individuals
economic risks
A risk occur because of changes in business conditions
uncontrollable risk
A risk on which actions have no effect
controllable risk
A risk that can be reduced or possibly even avoided by actions you take
speculative risk
A risk that presents that chance to gain as well as lose from an event or activity
pure risk
A risk that presents the chance of loss but no opportunity for gain
risk assessment
Looking at all aspects of your business and determining the risks you face
Liability protection
insurance covers ur company's legal responsibility for the harm it may cause to others as a result of what you and your employees do or fail to do. Harm may involve bodily injury or property damage due to defective products, faulty installations, and errors in services provided
life insurance
insurance is paid in the event of the death of the insured
Crime insurance
insurance protects against losses resulting from crime, such as robbery, computer fraud, or employee theft
unsecured loan
is granted based on the credit history of the individual
Property insurance
this insurance provides coverage for damage to buildings and the contents inside the buildings, such as furniture, fixtures, equipment, and merchandise owned by the business
consumer credit
when a retail business allows its customers to buy merchandise now and pay for it later