Which one of the following statements is true regarding sources of risk affecting
property exposures?
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Risk control techniques can usually manage the likelihood and
consequences of human risk sources to some extent.
Taylor owns Paoli Hardware, a mid-sized hardware store with 25 employees. Paoli
Hardware has won best local hardware store 3 years in a row. Taylor would like to
expand operations and has undertaken a SWOT analysis.
His most dedicated customers are generally over 40 years old and engaged in small
house projects, but his biggest revenue generator continues to be the sale of lumber.
He would like to obtain more commercial customers and increase lumber sales.
One of the major complaints Taylor hears from his customers is the difficulty finding
local contractors. So, he is considering hiring a general contractor at the store who
would also make house calls to assist customers. This will allow him to bill for labor
,and increase the sale of his products, but he is concerned it may increase his
insurance claims and premiums.
One of the younger store employees suggested they create a website to expand
sales to on-line purchases and target electronic advertisements to commercial
accounts. Taylor is not sure that he has the expertise to maintain a website and run the
store. The employee claims to know a company that can maintain a website for Paoli
at minimal cost.
Taylor believes the website is a good idea and will increase sales of lumber. To
protect Paoli from increases in the cost of lumber, Taylor is considering a forward
contract with the lumber yard.
Which one of Porter's Five Forces is most greatly affected by Paoli's ability to
negotiate a forward contract with a lumber supplier?
Give this one a try later!
The suppliers bargaining power to drive prices up.
Before speaking with a group or individual, the speaker should think about what he or
she wants the other person(s) to do as a result of the conversation. Which one of the
following steps in the communication process does the speaker complete by doing
this?
Give this one a try later!
Set a clear communication objective
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a mobile
billboard to promote his product. Oscar is surprised to learn that insurers are
reluctant to insure his vehicle because it fails to meet one of the ideal characteristics
of an insurable risk. Which characteristic is Oscar's vehicle least likely to meet?
Give this one a try later!
, Large number of similar exposure units
Many auto manufacturers have automated a portion of their assembly lines by
introducing a smart product. The smart product performs repetitive tasks, such as
making the same weld on each vehicle frame as it passes the smart product. These
smart products, which can be fixed or mobile, reduce repetitive motion injuries that
humans might suffer. They can also be used to perform dangerous tasks and in heavy-
lifting jobs. These smart products are called
Give this one a try later!
Robots.
A local shopping center reduced its net income loss after a fire by incurring additional
expenses to shorten the time it takes to repair the damage and reopen the shopping
center. Bob, the owner of the center, hired a contractor to work around the clock until
repairs were completed. This reduced Bob's net income loss because he was able to
repair the shops sooner. Bob's action is an example of which one of the following risk
management techniques?
Give this one a try later!
Loss reduction
After being promoted to a supervisory position, Henry decided that he needed to
work on becoming an active listener. All of the following are elements of active
listening, EXCEPT:
Give this one a try later!
, Introduction of new ideas
Jean is the Risk Manager for a Fortune 1000 company. Her CFO has tasked her to
analyze vulnerabilities in the firm's supply chain. The adequacy of suppliers to meet an
organization's needs would be an example of which one of the following types of
risk?
Give this one a try later!
Operational risk
Which one of the following statements is true regarding event tree analysis?
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Event tree analysis typically provides only two options, success or failure.
The basic accounting equation on which the balance sheet is structured is
Give this one a try later!
Assets = Liabilities + Net Worth
A facility established for the purpose of purchasing income-producing assets from an
organization, holding title to them and then using those assets to collateralize
property exposures?
Give this one a try later!
Risk control techniques can usually manage the likelihood and
consequences of human risk sources to some extent.
Taylor owns Paoli Hardware, a mid-sized hardware store with 25 employees. Paoli
Hardware has won best local hardware store 3 years in a row. Taylor would like to
expand operations and has undertaken a SWOT analysis.
His most dedicated customers are generally over 40 years old and engaged in small
house projects, but his biggest revenue generator continues to be the sale of lumber.
He would like to obtain more commercial customers and increase lumber sales.
One of the major complaints Taylor hears from his customers is the difficulty finding
local contractors. So, he is considering hiring a general contractor at the store who
would also make house calls to assist customers. This will allow him to bill for labor
,and increase the sale of his products, but he is concerned it may increase his
insurance claims and premiums.
One of the younger store employees suggested they create a website to expand
sales to on-line purchases and target electronic advertisements to commercial
accounts. Taylor is not sure that he has the expertise to maintain a website and run the
store. The employee claims to know a company that can maintain a website for Paoli
at minimal cost.
Taylor believes the website is a good idea and will increase sales of lumber. To
protect Paoli from increases in the cost of lumber, Taylor is considering a forward
contract with the lumber yard.
Which one of Porter's Five Forces is most greatly affected by Paoli's ability to
negotiate a forward contract with a lumber supplier?
Give this one a try later!
The suppliers bargaining power to drive prices up.
Before speaking with a group or individual, the speaker should think about what he or
she wants the other person(s) to do as a result of the conversation. Which one of the
following steps in the communication process does the speaker complete by doing
this?
Give this one a try later!
Set a clear communication objective
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a mobile
billboard to promote his product. Oscar is surprised to learn that insurers are
reluctant to insure his vehicle because it fails to meet one of the ideal characteristics
of an insurable risk. Which characteristic is Oscar's vehicle least likely to meet?
Give this one a try later!
, Large number of similar exposure units
Many auto manufacturers have automated a portion of their assembly lines by
introducing a smart product. The smart product performs repetitive tasks, such as
making the same weld on each vehicle frame as it passes the smart product. These
smart products, which can be fixed or mobile, reduce repetitive motion injuries that
humans might suffer. They can also be used to perform dangerous tasks and in heavy-
lifting jobs. These smart products are called
Give this one a try later!
Robots.
A local shopping center reduced its net income loss after a fire by incurring additional
expenses to shorten the time it takes to repair the damage and reopen the shopping
center. Bob, the owner of the center, hired a contractor to work around the clock until
repairs were completed. This reduced Bob's net income loss because he was able to
repair the shops sooner. Bob's action is an example of which one of the following risk
management techniques?
Give this one a try later!
Loss reduction
After being promoted to a supervisory position, Henry decided that he needed to
work on becoming an active listener. All of the following are elements of active
listening, EXCEPT:
Give this one a try later!
, Introduction of new ideas
Jean is the Risk Manager for a Fortune 1000 company. Her CFO has tasked her to
analyze vulnerabilities in the firm's supply chain. The adequacy of suppliers to meet an
organization's needs would be an example of which one of the following types of
risk?
Give this one a try later!
Operational risk
Which one of the following statements is true regarding event tree analysis?
Give this one a try later!
Event tree analysis typically provides only two options, success or failure.
The basic accounting equation on which the balance sheet is structured is
Give this one a try later!
Assets = Liabilities + Net Worth
A facility established for the purpose of purchasing income-producing assets from an
organization, holding title to them and then using those assets to collateralize
