UNL FINA 361 EXAM 2 CERTIFICATION
EVALUATION EXAMS SCRIPT STUDY GUIDE
WITH SOLVED QUESTIONS
⩥ Loss exposure.
Answer: Any situation where a loss could happen.
⩥ Objective risk.
Answer: The difference between actual losses and expected losses.
⩥ Subjective risk.
Answer: Uncertainty based on a person's opinion or state of mind.
⩥ Chance of loss.
Answer: The probability that a loss will happen.
⩥ Objective probability.
Answer: Long-run probability based on data.
⩥ Subjective probability.
Answer: A person's own estimate of the chance of loss.
,⩥ Peril.
Answer: The cause of a loss, such as fire, theft, or collision.
⩥ Hazard.
Answer: A condition that increases the chance or severity of loss.
⩥ Physical hazard.
Answer: A physical condition that increases loss.
⩥ Moral hazard.
Answer: Dishonesty that increases loss.
⩥ Attitudinal hazard.
Answer: Carelessness or indifference that increases loss.
⩥ Legal hazard.
Answer: Laws or legal conditions that increase losses.
⩥ Pure risk.
Answer: A situation with only loss or no loss.
, ⩥ Speculative risk.
Answer: A situation where profit or loss is possible.
⩥ Direct loss.
Answer: Loss from physical damage to property.
⩥ Indirect loss.
Answer: Loss that happens because of a direct loss.
⩥ Risk control.
Answer: Ways to reduce how often or how badly losses happen.
⩥ Risk financing.
Answer: Ways to pay for losses after they happen.
⩥ Avoidance.
Answer: Completely staying away from a risk.
⩥ Loss prevention.
Answer: Actions that reduce the chance of loss.
⩥ Loss reduction.
EVALUATION EXAMS SCRIPT STUDY GUIDE
WITH SOLVED QUESTIONS
⩥ Loss exposure.
Answer: Any situation where a loss could happen.
⩥ Objective risk.
Answer: The difference between actual losses and expected losses.
⩥ Subjective risk.
Answer: Uncertainty based on a person's opinion or state of mind.
⩥ Chance of loss.
Answer: The probability that a loss will happen.
⩥ Objective probability.
Answer: Long-run probability based on data.
⩥ Subjective probability.
Answer: A person's own estimate of the chance of loss.
,⩥ Peril.
Answer: The cause of a loss, such as fire, theft, or collision.
⩥ Hazard.
Answer: A condition that increases the chance or severity of loss.
⩥ Physical hazard.
Answer: A physical condition that increases loss.
⩥ Moral hazard.
Answer: Dishonesty that increases loss.
⩥ Attitudinal hazard.
Answer: Carelessness or indifference that increases loss.
⩥ Legal hazard.
Answer: Laws or legal conditions that increase losses.
⩥ Pure risk.
Answer: A situation with only loss or no loss.
, ⩥ Speculative risk.
Answer: A situation where profit or loss is possible.
⩥ Direct loss.
Answer: Loss from physical damage to property.
⩥ Indirect loss.
Answer: Loss that happens because of a direct loss.
⩥ Risk control.
Answer: Ways to reduce how often or how badly losses happen.
⩥ Risk financing.
Answer: Ways to pay for losses after they happen.
⩥ Avoidance.
Answer: Completely staying away from a risk.
⩥ Loss prevention.
Answer: Actions that reduce the chance of loss.
⩥ Loss reduction.
