100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
BusFin 3300 Midterm I Questions with Correct Answers $14.99   Add to cart

Exam (elaborations)

BusFin 3300 Midterm I Questions with Correct Answers

 7 views  0 purchase
  • Course
  • BUSFIN 3300
  • Institution
  • BUSFIN 3300

BusFin 3300 Midterm I Questions with Correct Answers

Preview 3 out of 17  pages

  • August 10, 2024
  • 17
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BUSFIN 3300
  • BUSFIN 3300
avatar-seller
cracker
BusFin 3300 Midterm I Questions with Correct
Answers
Risk Management Correct Answer-a process that identifies loss
exposures faced by an organization and selects the most appropriate
techniques for treating such exposures


Loss Exposure Correct Answer-any situation or circumstance in which a
loss is possible, regardless of whether a loss occurs


T/f: Possibility is NOT the same thing as possibility Correct Answer-
True


Chance of Loss Correct Answer-the probability that an event will occur


Objective Probability Correct Answer-refers to the long-run relative
frequency of an event based on the assumptions of an infinite number of
observations (uses data and past actions)


subjective probability Correct Answer-the individual's personal estimate
of the chance of loss


Objective Risk Correct Answer-the relative variation of actual loss from
expected loss


peril Correct Answer-cause of loss

,hazard Correct Answer-Increases the chance of loss


Physical Hazard Correct Answer-a physical condition that increases the
frequency or severity of loss


Moral Hazard Correct Answer-dishonesty or character defects in an
individual that increase the frequency or severity of loss


Legal Hazard Correct Answer-A condition of the legal environment that
increases loss frequency or severity.


Pure Risk Correct Answer-only possibility is loss or no loss
(catastrophies/insurance)


Speculative Risk Correct Answer-Profit or loss is possible (gambling)


diversifiable risk Correct Answer-A risk that affects only some
individuals, businesses, or small groups.


nondiversifiable risk Correct Answer-A risk that affects a large segment
of society at the same time.

, Enterprise Risk Management Correct Answer-combines into a single
unified treatment program all major risks faced by the firm; pure, spec,
strategic, operational, financial


Systematic Risk Correct Answer-a risk that influences a large number of
assets; collapse of entire system/market


Direct Loss Correct Answer-a financial loss that results from the
physical damage, destruction, or theft of the property


Indirect Loss Correct Answer-Loss that is a result or consequence of a
direct loss


Liability Risk Correct Answer-relates to harm or injury to other people
or their property because of your actions


Risk Avoidance Correct Answer-how to reduce the severity of a loss


Avoidance Correct Answer-Avoiding a loss


Loss Prevention Correct Answer-any activity that reduces the
probability that a loss will occur


Loss Reduction Correct Answer-A risk control technique that reduces
the severity of a particular loss.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 cracker. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

81989 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.99
  • (0)
  Add to cart