Question 1

Which of the following statements concerning business risk from customers and others is true?

Accepted Answer

A)   Customer injuries suffered while upon business property may or may not be the owners fault.
B)   Trespassers are not a risk as they are not legally on the business property.
C)   Class action product liability suits are the most common lawsuits filed against small businesses.
D)   People who file individual lawsuits against a company do not get as much money as those that join a class action suit.E) A) and B)
F) A) and C)

Question 2

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?

Accepted Answer

A)   Understate revenues and overstate deductible expenses
B)   Reconcile the cash register tape to the cash register contents every day
C)   Take cash from the businesses before it is recorded as revenue
D)   Borrow from tax money in order to make payments to creditorsE) B) and C)
F) None of the above

Question 3

Fidelity bonds help to:

Accepted Answer

A)   protect against losses from crimes committed against the business.
B)   cover losses incurred due to governmental audits.
C)   cover losses incurred by the employer due to employee embezzlement.
D)   cover abnormal losses from credit customers not paying their bills.E) B) and C)
F) All of the above

Question 4

There are three general types of events that cause business risk.Which of the following is not one of those three general types of events?

Accepted Answer

A)   Events related to customers and others.
B)   Events related to personnel.
C)   Events related to the property of the business.
D)   Events related to the competitors of the business.E) B) and D)
F) A) and B)

Question 5

Which of the following statements concerning compliance with government regulations is true?

Accepted Answer

A)   Violation of some of the regulations is probably inevitable.
B)   There are only a few rule-making government agencies.
C)   Violation of government regulations is not a significant business risk.
D)   The only cost of noncompliance is the time it takes to complete the necessary paperwork.E) A) and C)
F) A) and B)

Question 6

The advantage of legal protection methods for intellectual property is that there are multiple government agencies in each area that will assist a small business owner in maintaining their legal rights.

Accepted Answer

A) True 
 B)False

Question 7

A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.

Accepted Answer

A)   business interruption insurance
B)   credit insurance
C)   surety bond
D)   fidelity bondE) All of the above
F) B) and C)

Question 8

Which of the following statements is true regarding the OSHA Act?

Accepted Answer

A)   It covers employees in mining,transportation,and state and local governments.
B)   OSHA offers consultation services to employers for a fee.
C)   It requires businesses to report any accidents that result in a fatality or in the hospitalization of three or more employees within 24 hours.
D)   OSHA-defined "low-hazard" industries are exempt from the record keeping requirements of the regulations.E) C) and D)
F) None of the above

Question 9

Customers can never be a source of risk for businesses.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of using internal audits to manage risk?

Accepted Answer

A)   Every small business owners conduct internal audits on their own.
B)   Internal audits have a fixed structure decided by the government and all employers are required to comply.
C)   The owner should provide sufficient authority to the auditor to ensure that he or she can accomplish the goals of the audit.
D)   The owner should accept that the auditor has final authority when it comes to approving the audit plan.E) A) and D)
F) A) and C)

Question 11

_______ is collected by the IRS and state agencies as a percentage of tax upon payroll.

Accepted Answer

A)   Liability insurance
B)   Workers' compensation insurance
C)   Malpractice insurance
D)   Unemployment insuranceE) A) and D)
F) C) and D)

Question 12

Which of the following is a protected class established by the EEOC?

Accepted Answer

A)   Age
B)   Sex
C)   Marital status
D)   Political affiliationE) B) and D)
F) C) and D)

Question 13

_____ are programs designed to report on a user's keystrokes or data,or give remote control of a PC to others.

Accepted Answer

A)   Hubs
B)   Firewalls
C)   Viruses
D)   SpywareE) B) and C)
F) B) and D)

Question 14

______ occurs when the owner of real property does not enforce property rights and allows a non-owner to use the property as if it were his or her own.

Accepted Answer

A)   Abandonment
B)   Accession
C)   Property liability
D)   Adverse possessionE) A) and B)
F) A) and C)

Question 15

States of being that are expressly prohibited from suffering discrimination are called _____.

Accepted Answer

A)   vulnerable groups
B)   endangered sections
C)   protected classes
D)   ethnic majoritiesE) A) and B)
F) A) and C)

Question 16

Liability insurance protects a business against:

Accepted Answer

A)   disgruntled former employees filing suites.
B)   current employees setting up businesses which turn into competition for the organization.
C)   losses incurred due to the death of a key employee.
D)   claims from harm caused by inadvertent consequences of actions of the business or its employees.E) All of the above
F) None of the above

Question 17

Which of the following helps limit risk from violation of tax regulations?

Accepted Answer

A)   The owner should make payments to creditors by borrowing from tax money.
B)   The owner should understate revenues and overstate deductible expenses.
C)   The owner should take cash from the businesses before it is recorded as revenue.
D)   The owner should hire an accountant and a lawyer who are expert in tax issues.E) A) and C)
F) None of the above

Question 18

Which of the following statements is true of joint ventures?

Accepted Answer

A)   It requires both partners involved to allocate revenues and expenses equally between them.
B)   It is not considered a separate entity from any of the partners that own it.
C)   It does not require its partners to lose more than what each partner has invested in it.
D)   It is never taxed as a partnership.E) A) and B)
F) A) and C)

Question 19

Which of the following is true of insurance coverages?

Accepted Answer

A)   Vehicle liability insurance is mandated by the legislatures of all the states and territories of the United States.
B)   Workers' compensation insurance is mandatory in all the states and territories of the United States.
C)   Industries and businesses that have frequent seasonal layoffs pay lower amounts of unemployment premiums than do those that have stable employment.
D)   A fixed amount of unemployment insurance is collected from all industries.E) A) and B)
F) None of the above

Question 20

Ted,a 46-year-old IT professional,recently attended a job interview at Acton Org.He was not offered the job.Ted tried to find the reasons for his disqualification and the company could not provide a satisfactory explanation.He later learned that he was refused the job due to his age as the job position was offered to a 23-year-old who had just graduated from college.Which of the following laws protect Ted from such discriminations?

Accepted Answer

A)   ADA
B)   OSHA laws
C)   Sarbanes-Oxley Act
D)   ADEAE) C) and D)
F) B) and D)

Exam 16: Small Business Protection: Risk Management and Insurance

Fidelity bonds help to:

Correct Answer
verified

There are three general types of events that cause business risk.Which of the following is not one of those three general types of events?

Correct Answer
verified

_______ is collected by the IRS and state agencies as a percentage of tax upon payroll.

Correct Answer
verified

Which of the following statements is true of joint ventures?

Correct Answer
verified

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?

Correct Answer
verified

A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.

Correct Answer
verified

Which of the following statements concerning compliance with government regulations is true?

Correct Answer
verified

Which of the following is a protected class established by the EEOC?

Correct Answer
verified

Which of the following is true of using internal audits to manage risk?

Correct Answer
verified

______ occurs when the owner of real property does not enforce property rights and allows a non-owner to use the property as if it were his or her own.

Correct Answer
verified

Which of the following statements concerning business risk from customers and others is true?

Correct Answer
verified

Customers can never be a source of risk for businesses.

Correct Answer
verified

Correct Answer
verified

States of being that are expressly prohibited from suffering discrimination are called _____.

Correct Answer
verified

The advantage of legal protection methods for intellectual property is that there are multiple government agencies in each area that will assist a small business owner in maintaining their legal rights.

Correct Answer
verified

Which of the following helps limit risk from violation of tax regulations?

Correct Answer
verified

Which of the following statements is true regarding the OSHA Act?

Correct Answer
verified

_____ are programs designed to report on a user's keystrokes or data,or give remote control of a PC to others.

Correct Answer
verified

Liability insurance protects a business against:

Correct Answer
verified

Which of the following is true of insurance coverages?

Correct Answer
verified

Exam 16: Small Business Protection: Risk Management and Insurance

Fidelity bonds help to:

Correct AnswerverifiedShow Answer

There are three general types of events that cause business risk.Which of the following is not one of those three general types of events?

Correct AnswerverifiedShow Answer

_______ is collected by the IRS and state agencies as a percentage of tax upon payroll.

Correct AnswerverifiedShow Answer

Which of the following statements is true of joint ventures?

Correct AnswerverifiedShow Answer

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?

Correct AnswerverifiedShow Answer

A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.

Correct AnswerverifiedShow Answer

Which of the following statements concerning compliance with government regulations is true?

Correct AnswerverifiedShow Answer

Which of the following is a protected class established by the EEOC?

Correct AnswerverifiedShow Answer

Which of the following is true of using internal audits to manage risk?

Correct AnswerverifiedShow Answer

______ occurs when the owner of real property does not enforce property rights and allows a non-owner to use the property as if it were his or her own.

Correct AnswerverifiedShow Answer

Which of the following statements concerning business risk from customers and others is true?

Correct AnswerverifiedShow Answer

Customers can never be a source of risk for businesses.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

States of being that are expressly prohibited from suffering discrimination are called _____.

Correct AnswerverifiedShow Answer

The advantage of legal protection methods for intellectual property is that there are multiple government agencies in each area that will assist a small business owner in maintaining their legal rights.

Correct AnswerverifiedShow Answer

Which of the following helps limit risk from violation of tax regulations?

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding the OSHA Act?

Correct AnswerverifiedShow Answer

_____ are programs designed to report on a user's keystrokes or data,or give remote control of a PC to others.

Correct AnswerverifiedShow Answer

Liability insurance protects a business against:

Correct AnswerverifiedShow Answer

Which of the following is true of insurance coverages?

Correct AnswerverifiedShow Answer

Correct Answer
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