Question 1

Organizations spend about __________ percent of gross domestic product on insurance premiums.

Accepted Answer

A)   2
B)   5
C)   10
D)   20E) All of the above
F) B) and C)

Question 2

Risk management is concerned only with risks to individuals and businesses.

Accepted Answer

A) True 
 B)False

Question 3

Risk management now includes the evaluation of:

Accepted Answer

A)   worldwide risks such as global warming.
B)   worldwide issues such as poverty.
C)   European issues such as the value of the euro.
D)   political risks in South America.E) A) and C)
F) All of the above

Question 4

Insurance companies will provide coverage only for losses that are accidental.

Accepted Answer

A) True 
 B)False

Question 5

An insurance premium is the fee charged by the insurance company in return for their promise to pay for all or part of a loss.

Accepted Answer

A) True 
 B)False

Question 6

The car insurance premium charged for young male drivers is higher than the premium for young female drivers. This is due to the rule of indemnity.

Accepted Answer

A) True 
 B)False

Question 7

Fairweather Farms is located on Florida's Gulf Coast and is primarily engaged in raising and harvesting citrus fruit. The owners of Fairweather Farms are correct in beginning to think about how the risk of climate change might impact their crops in the future.

Accepted Answer

A) True 
 B)False

Question 8

A mutual insurance company is a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 9

A surety bond protects employers from employee dishonesty.

Accepted Answer

A) True 
 B)False

Exam 24: Extension: Managing Risk

Fairweather Farms is located on Florida's Gulf Coast and is primarily engaged in raising and harvesting citrus fruit. The owners of Fairweather Farms are correct in beginning to think about how the risk of climate change might impact their crops in the future.

Correct Answer
verified

The car insurance premium charged for young male drivers is higher than the premium for young female drivers. This is due to the rule of indemnity.

Correct Answer
verified

Risk management is concerned only with risks to individuals and businesses.

Correct Answer
verified

Risk management now includes the evaluation of:

Correct Answer
verified

An insurance premium is the fee charged by the insurance company in return for their promise to pay for all or part of a loss.

Correct Answer
verified

Insurance companies will provide coverage only for losses that are accidental.

Correct Answer
verified

Organizations spend about __________ percent of gross domestic product on insurance premiums.

Correct Answer
verified

A mutual insurance company is a nonprofit organization.

Correct Answer
verified

A surety bond protects employers from employee dishonesty.

Correct Answer
verified

Exam 24: Extension: Managing Risk

Fairweather Farms is located on Florida's Gulf Coast and is primarily engaged in raising and harvesting citrus fruit. The owners of Fairweather Farms are correct in beginning to think about how the risk of climate change might impact their crops in the future.

Correct AnswerverifiedShow Answer

The car insurance premium charged for young male drivers is higher than the premium for young female drivers. This is due to the rule of indemnity.

Correct AnswerverifiedShow Answer

Risk management is concerned only with risks to individuals and businesses.

Correct AnswerverifiedShow Answer

Risk management now includes the evaluation of:

Correct AnswerverifiedShow Answer

An insurance premium is the fee charged by the insurance company in return for their promise to pay for all or part of a loss.

Correct AnswerverifiedShow Answer

Insurance companies will provide coverage only for losses that are accidental.

Correct AnswerverifiedShow Answer

Organizations spend about __________ percent of gross domestic product on insurance premiums.

Correct AnswerverifiedShow Answer

A mutual insurance company is a nonprofit organization.

Correct AnswerverifiedShow Answer

A surety bond protects employers from employee dishonesty.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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