1. What is a business risk? A risk that comes with running the business
2. What is risk management? The management of the different risk associated with the
business
3. What are the four types of risks an entrepreneur should anticipate?
Natural, human, insurance, uninsurable risks
4. What types of risks are posed by employees and customers?
Human risks, and robberies, burglaries, and shoplifting.
5. Explain product obsolescence.
When a product becomes obsolete
6. List the five things business owners can do to reduce the risk of loss resulting from
external theft?
By getting insurance for their items.
7. What is OSHA?
8. What is the most common way to transfer risk?
By finding someone who can limit that risk
9. What type of low-cost policy provides property and liability coverage for small business
owners?
Insurance
10. Explain under what circumstances a surety bond is required.
11. What is consumer credit?
Credit given that a consumer can by things with in that specific store
12. Identify and explain the types of consumer credit that a business might extend to
customers.
They might give them some if their item was damaged
13. Installment loans are taken out to finance what types of purchases?
14. Why should the due dates for trade credit repayment be carefully monitored?
15. Why would a business risk extending credit?
16. Explain the cost of credit to a business owner.
17. Describe how credit affects profit.
18. List the five ways businesses can reduce credit risk.
1a
2c
3c
4b
5a
6d
7c
8b
9c
10 d
11 t
12 t
13 f
14 t
15 f
16 f
17 t
18 f
19 f
20 t
21 J
22 F
23 D
24 A
25 C
26 J
27 B
28 H
29 I
30 G