Principles of Business, Finance, and Marketing
Chapter 14 questions with accurate answers
Assuming risk Ans✓✓✓ means accepting full responsibility for a loss
Avoidance Ans✓✓✓ is taking steps to eliminate risk
Business interruption insurance Ans✓✓✓ covers lost income and
expenses caused by a property damage loss
Claim Ans✓✓✓ Process of documenting a loss against an insurance
policy
Commercial auto insurance Ans✓✓✓ protects vehicles owned by a
business from accidents and other losses
Commercial insurance Ans✓✓✓ is insurance that protects commercial
property from risks
Commercial property insurance Ans✓✓✓ covers buildings and other
assets of the business
Contract agent Ans✓✓✓ is an insurance agent who works for only one
insurance company
, Controllable risks Ans✓✓✓ are situations that cannot be avoided, but
can be minimized by purchasing insurance or creating a risk
management plan
Data breach insurance Ans✓✓✓ covers legal fees and financial losses
sustained when a company's data files are accessed without permission
Deductible Ans✓✓✓ Amount the insured is responsible for paying
when a claim is made
Directors and officers insurance Ans✓✓✓ covers financial losses
caused by company's executive officers
Disability insurance Ans✓✓✓ provides some income to employees who
become sick or injured due to a nonwork related event or condition
Economic risk Ans✓✓✓ is a situation that occurs when business
activities suffer due to changes in the US or world economy
Equipment breakdown insurance Ans✓✓✓ covers losses due to the
accidental breakdown of machinery and equipment
Fidelity bonds Ans✓✓✓ cover financial and property losses caused by
employee actions
Chapter 14 questions with accurate answers
Assuming risk Ans✓✓✓ means accepting full responsibility for a loss
Avoidance Ans✓✓✓ is taking steps to eliminate risk
Business interruption insurance Ans✓✓✓ covers lost income and
expenses caused by a property damage loss
Claim Ans✓✓✓ Process of documenting a loss against an insurance
policy
Commercial auto insurance Ans✓✓✓ protects vehicles owned by a
business from accidents and other losses
Commercial insurance Ans✓✓✓ is insurance that protects commercial
property from risks
Commercial property insurance Ans✓✓✓ covers buildings and other
assets of the business
Contract agent Ans✓✓✓ is an insurance agent who works for only one
insurance company
, Controllable risks Ans✓✓✓ are situations that cannot be avoided, but
can be minimized by purchasing insurance or creating a risk
management plan
Data breach insurance Ans✓✓✓ covers legal fees and financial losses
sustained when a company's data files are accessed without permission
Deductible Ans✓✓✓ Amount the insured is responsible for paying
when a claim is made
Directors and officers insurance Ans✓✓✓ covers financial losses
caused by company's executive officers
Disability insurance Ans✓✓✓ provides some income to employees who
become sick or injured due to a nonwork related event or condition
Economic risk Ans✓✓✓ is a situation that occurs when business
activities suffer due to changes in the US or world economy
Equipment breakdown insurance Ans✓✓✓ covers losses due to the
accidental breakdown of machinery and equipment
Fidelity bonds Ans✓✓✓ cover financial and property losses caused by
employee actions
