FSU RMI 3011 EXAM 1 | Florida State University |
UPDATED Questions with 100% Verified Answers
Q1: Cost Benefit Analysis
A: Increase spending one element reduce spending on another element
consider direct and indirect
Spend until cost outweighs benefit
time value of money
Q2: Indirect Loss
A: Financial loss arising from loss of use of property
Q3: Property Risk
A: Direct loss
Indirect loss
Q4: Types of property
A: Real property ( Houses)
Personal Property (Car)
Intangible property (Patents License)
Q5: Personal Risk (Life/health risk)
A: Premature Death
Insufficient Funds during retirement
Poor Health
Unemployment
Q6: Enterprise Risk
A: A term that encompasses all major risk faced by business firms
Operational Risk
Financial Risk
Strategic Risk
Reputational Risk
Q7: Risk
A: Traditional Def: Uncertainty
Better Def: Uncertainty about chance, timing or amount of loss.
Risk of _______ Death
Risk of house fire
RIsk of car Accident
Risk of poor health
Risk has known Probablities
, Q8: Uncertainty
A: Knightian Def: not susceptible to measurement
Uncertainty = Ambiguity
Q9: Speculative risk
A: Have three possible outcomes
Either a gain, loss, or break even
Q10: Hazard
A: Conditions affecting frequency or severity
three types
Moral Hazard (icy roads)
Physical Hazard (Locked doors)
Legal Hazard( Large damages awards)
Q11: Exposure (loss)
A: Personal or property facing risk
Q12: Peril
A: The immediate cause of loss
Q13: Element of risk
A: Hazards
peril
Loss Exposure
Q14: Severity
A: How bad the loss is
Q15: Frequency
A: How often is the loss
Q16: Liability Risk (Negligence)
A: Responsibility for actions that cause injury or property damage or to another.
No max upper limit
Future wages may be imposed with a lien
May result in legao decrease cost
Q17: Private Insurance
A: Life
Health
Property
UPDATED Questions with 100% Verified Answers
Q1: Cost Benefit Analysis
A: Increase spending one element reduce spending on another element
consider direct and indirect
Spend until cost outweighs benefit
time value of money
Q2: Indirect Loss
A: Financial loss arising from loss of use of property
Q3: Property Risk
A: Direct loss
Indirect loss
Q4: Types of property
A: Real property ( Houses)
Personal Property (Car)
Intangible property (Patents License)
Q5: Personal Risk (Life/health risk)
A: Premature Death
Insufficient Funds during retirement
Poor Health
Unemployment
Q6: Enterprise Risk
A: A term that encompasses all major risk faced by business firms
Operational Risk
Financial Risk
Strategic Risk
Reputational Risk
Q7: Risk
A: Traditional Def: Uncertainty
Better Def: Uncertainty about chance, timing or amount of loss.
Risk of _______ Death
Risk of house fire
RIsk of car Accident
Risk of poor health
Risk has known Probablities
, Q8: Uncertainty
A: Knightian Def: not susceptible to measurement
Uncertainty = Ambiguity
Q9: Speculative risk
A: Have three possible outcomes
Either a gain, loss, or break even
Q10: Hazard
A: Conditions affecting frequency or severity
three types
Moral Hazard (icy roads)
Physical Hazard (Locked doors)
Legal Hazard( Large damages awards)
Q11: Exposure (loss)
A: Personal or property facing risk
Q12: Peril
A: The immediate cause of loss
Q13: Element of risk
A: Hazards
peril
Loss Exposure
Q14: Severity
A: How bad the loss is
Q15: Frequency
A: How often is the loss
Q16: Liability Risk (Negligence)
A: Responsibility for actions that cause injury or property damage or to another.
No max upper limit
Future wages may be imposed with a lien
May result in legao decrease cost
Q17: Private Insurance
A: Life
Health
Property
