MGT Exam 1

MGT EXAM 1 WITH CORRESPONDIG
ANSWERS OF EACH QUESTION
risk b- bCORRECT✅✅uncertainty bor black bof bpredictability

peril b- bCORRECT✅✅the bcause bof ba bpossible bloss; bfire, bwindstorms, brobbery,
bpremature bdeath


hazard b- bCORRECT✅✅increases bthe blikelihood bof ba bloss

Pure bRisk b- bCORRECT✅✅a brisk bthat bpresents bthe bchance bof bloss bbut bno
bopportunity bfor bgain


Speculative bRisk b- bCORRECT✅✅a bsituation bin bwhich beither bprofit bor bloss bis
bpossible


Types bof bRisk bManagement b- bCORRECT✅✅risk bavoidance,
risk breduction,
risk bassumption,
risk bshifting

Deductible b- bCORRECT✅✅the bset bamount bthat bthe bpolicyholder bmust bpay bper
bloss bon ban binsurance bpolicy


liability b- bCORRECT✅✅legal bresponsibility bfor bthe bfinancial bcost bof banother
bperson's blosses bor binjuries


Negligence b- bCORRECT✅✅careless bneglect, boften bresulting bin binjury

stict bliability b- bCORRECT✅✅a bperson bis bheld bresponsible bfor bintentional bor
bunintentional bactions


Vicarious bLiability b- bCORRECT✅✅When bone bperson bis bheld bresponsible bfor bthe
bactions bof banother


personal bproperty bfloater b- bCORRECT✅✅high bvalue bitems

umbrella bpolicy b- bCORRECT✅✅supplementary bpersonal bliability bcoverage; balso
bcalled ba bpersonal bcatastrophe bpolicy


Actual bCash bValue b- bCORRECT✅✅the bpayment byou breceive bis bbased bon bthe
breplacement bcost bof ban bitem bminus bdepreciation