Finance

Which of the following statements about a personal risk management pro

Which of the following statements about a personal risk management program is (are) true? I. Insurance and retention are the only techniques used to handle potential losses. II. The steps in a personal risk management process are the same steps used by businesses. A) I only B) II only C) both I and II D) […]

Read full post

Date: September 19th, 2020

All of the following are disadvantages of using insurance in a commerc

All of the following are disadvantages of using insurance in a commercial risk management program EXCEPT A) There is an opportunity cost because premiums must be paid in advance. B) Considerable time and effort must be spent selecting and negotiating coverages. C) It results in considerable fluctuations in earnings after losses occur. D) Attitudes toward […]

Read full post

Date: September 19th, 2020

Cal was just hired as XYZ Company’s first risk manager. Cal would like

Cal was just hired as XYZ Company’s first risk manager. Cal would like to employ the risk management process. The first step in the process Cal should follow is to A) evaluate potential losses faced by XYZ Company. B) formulate a treatment plan for XYZ Company’s loss exposures. C) identify potential losses faced by XYZ […]

Read full post

Date: September 19th, 2020

All of the following statements about the administration of a risk man

All of the following statements about the administration of a risk management program are true EXCEPT A) The risk manager is an important part of a firm’s management team. B) A risk management policy statement can be used to educate top executives about the risk management process. C) If a risk management program is properly […]

Read full post

Date: September 19th, 2020

Members of Mid-South Petroleum Distributors, a trade group, had troubl

Members of Mid-South Petroleum Distributors, a trade group, had trouble obtaining affordable pollution liability insurance. The members formed a group captive that is exempt from many state laws that apply to other insurers. This group captive is called a(n) A) reinsurance pool. B) Lloyd’s association. C) alien insurer. D) risk retention group.     ANSWER […]

Read full post

Date: September 19th, 2020

A restaurant owner leased a meeting room at the restaurant to a second

A restaurant owner leased a meeting room at the restaurant to a second party. The lease specified that the second party, not the restaurant owner, would be responsible for any liability arising out of the use of the meeting room, and that the restaurant owner would be “held harmless” for any damages. The restaurant owner’s […]

Read full post

Date: September 19th, 2020