Answers the question.

Date: 2015-10-07; view: 556.

In each of the following, select the word or phrase that best completes the statement or

Answer the following questions.

1) How can risks be defined?

2) What risks are faced by the small firms?

3) What is the best way to protect a business against the risk of financial hardship?,

4) What can be done to handle the risks?

5) What are the most effective ways of keeping losses to a minimum?

6) What is meant by "shifting the risk" as a means of coping with possible loss?

1) What of most small firms is represented by its inventory and buildings?

a. the property с. the capital

b. the workforce d. the fund

2) Who gives employers responsibility for the health and safety of employees when they are

performing their duties?

a. the firm с the state

b. the manager d. legislation

3) Protection against losses due to inability to collect accounts receivable can be

a. well-organized c. cheap

b. expensive d. well-done

4) Losses through dishonest employees can be in the form of

a. cash c. securities

b. merchandise d. all of these

5) When business owners are aware of the existing risks they may

a. appeal to the insurance company

b. pay their attention to the matter of how to handle them

с. run their business successfully

6) A self-insurance plan is

a. a plan to cope with losses

b. a capital spending plan

c. a specified, amount set aside in a reserve fund each year

7) Fire Insurance is property insurance that covers risks of

a. the damage of water с. the damage of smoke

b. fire d. all of these

8) Hedging is a device to

a. run business c. make profits

b. protect profits d. keep accounting records