Question 1

Risk management is getting much simpler thanks to the Internet.

Accepted Answer

A) True 
 B)False

Question 2

________ is the armor individuals, businesses, and nonprofit organizations use to protect themselves from various financial risks.

Accepted Answer

A)   A good accountant
B)   Investment in AAA bonds
C)   Insurance
D)   IndemnityE) C) and D)
F) A) and C)

Question 3

An insurance premium is the fee charged by the insurance company in return for their promise to pay for all or part of a loss.

Accepted Answer

A) True 
 B)False

Question 4

Firms can take out term life-insurance policies on their top executives.

Accepted Answer

A) True 
 B)False

Question 5

Robert, owner and operator of a local nursing home, is designing an addition. Though, he realized that water sprinklers and smoke detectors were now required by state regulations, it was not a problem for him. His existing structure already had sprinklers and detectors because he felt that this was an effective strategy to

Accepted Answer

A)   self-insure against the risk of fire loss.
B)   minimize the speculative risk of a fire.
C)   reduce the risk of a fire loss.
D)   avoid the risk of a fire loss.E) None of the above
F) A) and B)

Question 6

A stock insurance company is owned by its policyholders.

Accepted Answer

A) True 
 B)False

Question 7

Workers' compensation insurance is required in all states except Louisiana.

Accepted Answer

A) True 
 B)False

Question 8

One advantage of health savings accounts is that healthy people can use tax-deferred money to save for their future medical needs.

Accepted Answer

A) True 
 B)False

Exam 23: Appendix: Managing Risk

________ is the armor individuals, businesses, and nonprofit organizations use to protect themselves from various financial risks.

Correct Answer
verified

Firms can take out term life-insurance policies on their top executives.

Correct Answer
verified

Correct Answer
verified

A stock insurance company is owned by its policyholders.

Correct Answer
verified

An insurance premium is the fee charged by the insurance company in return for their promise to pay for all or part of a loss.

Correct Answer
verified

Risk management is getting much simpler thanks to the Internet.

Correct Answer
verified

Workers' compensation insurance is required in all states except Louisiana.

Correct Answer
verified

One advantage of health savings accounts is that healthy people can use tax-deferred money to save for their future medical needs.

Correct Answer
verified

Exam 23: Appendix: Managing Risk

________ is the armor individuals, businesses, and nonprofit organizations use to protect themselves from various financial risks.

Correct AnswerverifiedShow Answer

Firms can take out term life-insurance policies on their top executives.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A stock insurance company is owned by its policyholders.

Correct AnswerverifiedShow Answer

An insurance premium is the fee charged by the insurance company in return for their promise to pay for all or part of a loss.

Correct AnswerverifiedShow Answer

Risk management is getting much simpler thanks to the Internet.

Correct AnswerverifiedShow Answer

Workers' compensation insurance is required in all states except Louisiana.

Correct AnswerverifiedShow Answer

One advantage of health savings accounts is that healthy people can use tax-deferred money to save for their future medical needs.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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