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BusFin 3300 Midterm I Questions with Correct Answers $14.99   Add to cart

Exam (elaborations)

BusFin 3300 Midterm I Questions with Correct Answers

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  • Course
  • BUSFIN 3300
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  • BUSFIN 3300

BusFin 3300 Midterm I Questions with Correct Answers

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  • August 10, 2024
  • 17
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BUSFIN 3300
  • BUSFIN 3300
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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.

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