Question 1

Which of the following is the risk that most concerns businesspeople?

Accepted Answer

A)  Avoidable risk
B)  Pure risk
C)  Speculative risk
D)  Managed riskE) All of the above
F) None of the above

Question 2

The threat of lawsuits has caused some drug companies not to manufacture certain types of vaccines.What type of risk management option is being practiced?

Accepted Answer

A)  Insuring against the risk
B)  Assuming the risk
C)  Avoiding the risk
D)  Reducing the riskE) A) and D)
F) B) and C)

Question 3

Marianne has just graduated from college and as part of her orientation in her new job she must choose the type of health insurance plan she would like.She is new to the area and really wants to budget carefully as she would like to buy a new home as soon as she saves up enough money.She considers herself a healthy young person of 22.Which of the following pieces of advice is the most sensible for her to follow in choosing an insurance plan?

Accepted Answer

A)  The HMO is the ideal plan for Marianne.It offers a full range of health care benefits at a reasonable price.While she cannot choose her doctor,there is a large list of local doctors to choose from.
B)  Because Marianne wants to get a home and she is basically healthy,she should just rely on workers' compensation and save her money.
C)  Life insurance is far more important to Marianne than health insurance.
D)  The more expensive PPO is the only safe bet since under that plan Marianne will be able to choose the doctor she wants to see.E) B) and D)
F) None of the above

Question 4

Explain the difference between speculative risk and pure risk.Which type of risk is of more concern to businesspeople?

Accepted Answer

Pure risk is of more concern to business...

Question 5

Jonathon is in charge of risk management for Learnit Corp. ,a large chain of preschools in the mid-west.He has decided to build enterprise risk management into the organization.The first step Jonathon should take is to:

Accepted Answer

A)  decide on the spyware software the organization should buy.
B)  send a letter to all of the staff informing them that using email for personal purposes will not be allowed.
C)  remove the playgrounds from all of the locations.
D)  decide which risks the organization should manage.E) All of the above
F) C) and D)

Question 6

The type of risk that is of most concern to businesspeople is speculative risk.

Accepted Answer

A) True 
 B)False

Question 7

One benefit of Preferred Provider Organizations (PPOs) compared to Health Maintenance Organizations (HMOs) is that PPOs:

Accepted Answer

A)  offer lower costs for members.
B)  give members an individual spending account to use for health care costs.
C)  allow members to choose their own physicians.
D)  always pay 100 percent of the authorized cost of treatment.E) B) and C)
F) A) and D)

Question 8

Risk management is getting much simpler thanks to the Internet.

Accepted Answer

A) True 
 B)False

Question 9

Hap has health coverage through a Health Maintenance Organization (HMO).He is likely to be very pleased with the amount of flexibility he has to choose his doctor and his health care options.

Accepted Answer

A) True 
 B)False

Question 10

Doctors obtain ________ insurance to cover claims from patients who have been injured as a result of the doctor's carelessness.

Accepted Answer

A)  product liability
B)  workers' compensation
C)  malpractice
D)  service liabilityE) B) and C)
F) None of the above

Exam 22: Bonus B: Managing Risk

Risk management is getting much simpler thanks to the Internet.

Correct Answer
verified

Which of the following is the risk that most concerns businesspeople?

Correct Answer
verified

Jonathon is in charge of risk management for Learnit Corp. ,a large chain of preschools in the mid-west.He has decided to build enterprise risk management into the organization.The first step Jonathon should take is to:

Correct Answer
verified

One benefit of Preferred Provider Organizations (PPOs) compared to Health Maintenance Organizations (HMOs) is that PPOs:

Correct Answer
verified

Correct Answer
verified

Hap has health coverage through a Health Maintenance Organization (HMO).He is likely to be very pleased with the amount of flexibility he has to choose his doctor and his health care options.

Correct Answer
verified

The threat of lawsuits has caused some drug companies not to manufacture certain types of vaccines.What type of risk management option is being practiced?

Correct Answer
verified

The type of risk that is of most concern to businesspeople is speculative risk.

Correct Answer
verified

Explain the difference between speculative risk and pure risk.Which type of risk is of more concern to businesspeople?

Correct Answer
verified
Pure risk is of more concern to business...
View Answer

Doctors obtain ________ insurance to cover claims from patients who have been injured as a result of the doctor's carelessness.

Correct Answer
verified

Exam 22: Bonus B: Managing Risk

Risk management is getting much simpler thanks to the Internet.

Correct AnswerverifiedShow Answer

Which of the following is the risk that most concerns businesspeople?

Correct AnswerverifiedShow Answer

Jonathon is in charge of risk management for Learnit Corp. ,a large chain of preschools in the mid-west.He has decided to build enterprise risk management into the organization.The first step Jonathon should take is to:

Correct AnswerverifiedShow Answer

One benefit of Preferred Provider Organizations (PPOs) compared to Health Maintenance Organizations (HMOs) is that PPOs:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Hap has health coverage through a Health Maintenance Organization (HMO).He is likely to be very pleased with the amount of flexibility he has to choose his doctor and his health care options.

Correct AnswerverifiedShow Answer

The threat of lawsuits has caused some drug companies not to manufacture certain types of vaccines.What type of risk management option is being practiced?

Correct AnswerverifiedShow Answer

The type of risk that is of most concern to businesspeople is speculative risk.

Correct AnswerverifiedShow Answer

Explain the difference between speculative risk and pure risk.Which type of risk is of more concern to businesspeople?

Correct AnswerverifiedPure risk is of more concern to business...View AnswerShow Answer

Doctors obtain ________ insurance to cover claims from patients who have been injured as a result of the doctor's carelessness.

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
verified

Correct Answer
verified
Pure risk is of more concern to business...
View Answer

Correct Answer
verified