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RMI 2302 Exam 1 Nyce FSU Questions With Complete Solutions.
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RMI 2302 Exam 1 Nyce FSU Questions With Complete Solutions.
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RMI 2302 Exam 1 Nyce FSU Questions With Complete Solutions.What causes the "invisible hand mechanism" to break down? Answer- Positive and negative externalities
What is the best measure of risk? Answer- Standard deviation
What type of question asks what "should" be? Answer- Normative
The CEO wants to create something, the owners are furious and believe it's not in their best interest. Which term best describes the situation? Answer- Principal-Agent
problem
The possibility of an organization being sued because of a product injuring a customer is an example of which risk? Answer- Liability
The possibility of an organization going bankrupt because of poor investment choices in its asset portfolio is an example of what risk? Answer- Financial
The likelihood of a cyber attack on Paypal's website is an example of which risk? Answer- Core
Which is an advantage of a corporation? Answer- Ability to issue common stock
When measuring risk, impact is synonymous with? Answer- Severity
What shows the amount of profit unearned by adopting a suboptimal course of action? Answer- Regret table
The immediate cause of a loss is? Answer- Peril
Slippery road conditions are an example of? Answer- Hazard
What category of risk represents the risks that are inherent in an organization's operations? Answer- Core
Possible illness and premature death are examples of what source of risk? Answer- Personal
Cole fails to be careful with his cellphone because he purchased insurance coverage
on it, his behavior is an example of? Answer- Moral hazard
Changes of law, such as the legalization of marijuana, are examples of? Answer- Societal hazard
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