FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 22: Bonus B: Managing Risk

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

True/False

Review LaterAdd Note

Review Later

A stock insurance company is owned by its policyholders.

Correct Answer

verified

Show Answer

Question 72

True/False

Review LaterAdd Note

Review Later

Health savings accounts are managed care plans that have a high deductible.

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Some businesses will set aside money to cover routine losses and buy "catastrophe" policies to cover big losses.This is an example of which of the following?

Constitutional Corporation is a mutual insurance company.The company has had a good year,with the amount of premiums exceeding the amount of claims by a significant amount.This is likely to result in a(n) :

Workers' compensation insurance guarantees payment of wages,medical care,and rehabilitation services for employees who are injured on the job.

Businesses can often reduce the risk to which they are exposed.

Proctor & Gamble Inc.is ready to launch a new shampoo in the marketplace.They will incur a speculative risk.

Discuss the difference between HMOs and PPOs.

According to the rule of indemnity,an insured person cannot collect more than the actual loss from an insurable risk.

The federal government provides some insurance protection.

Self-insurance makes more sense for firms that operate one large facility than it does for firms with facilities scattered all over the country.

If a pure risk occurs a company loses money;but if the events do not occur,the company gains nothing.

Risks such as global warming are the concern of businesses and governments primarily in the U.S.

Which type of risk management strategy is a company using when it installs mirrors and surveillance cameras to spot and prevent shoplifting?

Abraham is excited about opening his car wash facility.The required investment of money and time is sizable and although he has high hopes,Abraham is taking a speculative risk.This means that:

Typically,Health Maintenance Organizations (HMOs)offer members more flexibility in the choice of doctors and health care than other forms of health insurance providers.

Speculative risk involves a chance of either profit or loss.

Nancy owns a high-fashion boutique and one source of competitive advantage in the past has been her ability to spot the latest trends,stock the store with those items,and sell out before the next new trend becomes popular.Unfortunately,this year Nancy missed on what would be "hot" and is now stuck with mountains of clothing and accessories that did not sell.All of her cash is invested in this clothing and at the moment she is unable to restock the store with the next season's clothes.Nancy is likely not worried because:

UPS requires their delivery people to wear seat belts as they drive their trucks.This is an example of self-insuring as a risk management strategy.

Outsourcing helps some companies avoid risk.