CPCU 500 - Full Practice Exam 100% Correct Answers Verified Latest 2024 Version
6 views 0 purchase
Course
Academic Avengers Verified Papers
Institution
Academic Avengers Verified Papers
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 preven...
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.
D. Root cause analysis. - ✔✔B. Benchmarking.
An organization has had a high percentage of repetitive stress injuries to workers in a particular phase of
their production process. The risk manager has been asked to analyze these injuries from a system safety
analysis perspective. Which one of the following techniques should the risk manager use to investigate
these accidents?
, A. Failure mode and effects analysis
B. Job safety analysis
C. Future states analysis
D. Strategy analysis - ✔✔B. Job safety analysis
An organization can use securitization to exchange
A. Cash for income-producing assets.
B. Debt for income-producing assets.
C. Income-producing assets for cash.
D. Liabilities for mortgage receivables. - ✔✔C. Income-producing assets for cash
Which one of the following best explains how most smart products potentially improve risk
management?
A. They assess risks in dangerous areas.
B. They generate big data to which advanced analytics can be applied.
C. They scan and inspect structures for unsafe conditions.
D. They measure worker fatigue. - ✔✔B. They generate big data to which advanced analytics can be
applied.
Tania works in the fraud unit for Greatview Insurance. There is a claimant who appears to be involved in
multiple cases of insurance fraud. Tania decides to use social media to obtain information that may be
used to develop a profile of the claimant. Tania's use of social media is an example of which one of the
following types of data?
A. Unstructured external
B. Unstructured internal
C. Structured internal
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller hov. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
