CPCU 500 - Full Practice Exam | 100% Correct Answers | Verified | Latest 2024 Version

In order to achieve collaboration, group leaders must A. Remain focused on achieving the goals of their individual groups. B. Focus on the worker's personality rather than results. C. Remain focused on preventing stakeholders from straying from the common goal. D. Promote competition among members of the group. - C. Remain focused on preventing stakeholders from straying from the common goal. Which of the following risk management program goals is an essential goal for all public entities? A. Survival B. Continuity of operations C. Growth D. Earning stability - B. Continuity of operations Which one of the following is described as a distributed database that serves as a collectively shared ledger? A. Telematics B. Big data C. Blockchain D. The Internet of Things - C. Blockchain The original cost of a property is known as the A. Replacement cost.B. Historical cost. C. Market value. D. Tax-appraised value. - B. Historical cost. Which one of the following statements is true if earnings at risk are $200,000 with 90% confidence? A. Earnings at risk are projected to be $180,000. B. Earnings at risk are projected to be less than $200,000 10% of the time. C. Earnings at risk are projected to be $200,000 90% of the time. D. Earnings at risk are projected to be greater than $200,000 10% of the time. - B. Earnings at risk are projected to be less than $200,000 10% of the time. Which one of the following statements is true regarding event tree analysis? A. Event tree analysis can be used to select the most effective strategy to achieve a goal. B. Event tree analysis provides only quantitative information. C. Event tree analysis provides only qualitative information. D. Event tree analysis typically provides only two options, success or failure. - D. Event tree analysis typically provides only two options, success or failure. Regression analysis assumes that A. The variable being forecast varies predictably with another variable. B. Dependent variables are unaffected by independent variables. C. For any given past year, the projected trend value will be the same as the actual outcome. D. The linear regression line is more accurate the further it gets from the actual data values used. - A. The variable being forecast varies predictably with another variable.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 purcha - d. Technological advancements The level of confidence an organization places in the organization's risk management culture, practices, and procedures is called A. Risk tolerance. B. Tolerable uncertainty. C. Risk assurance. D. Probable maximum loss. - C. Risk assurance. The process of comparing the key risk indicators of an organization with those of other organizations in the same industry is known as A. Hedging. B. Benchmarking. C. Trend analysis