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