Ch 14

Question 1

possibility of incurring a loss

Answer 1

risk

Question 2

risk that can result in financial loss

Answer 2

economic risk

Question 3

risk that can result in loss of health or well-being

Answer 3

personal risk

Question 4

harm or injury of others or their property due to your actions

Answer 4

liability risk

Question 5

risk that presents a chance for loss, but no opportunity for gain

Answer 5

pure risk

Question 6

risk that can be reduced/eliminated by your actions

Answer 6

controllable risk

Question 7

exchange the uncertainty of a possible large financial loss for a certain smaller payment

Answer 7

insurance

Question 8

agrees to take on certain economic risks and to pay for losses if they occur

Answer 8

insurer

Question 9

person or business which the insurer assumes the risk

Answer 9

insured

Question 10

written policy stating the conditions to which the insurance company and policyholder have agreed.

Answer 10

insurance policy

Question 11

person or company buying the policy

Answer 11

policyholder

Question 12

amount the policyholder must pay for insurance coverage

Answer 12

premium

Question 13

policyholder’s request for payment for a loss that the insurance policy covers

Answer 13

claim

Question 14

exclusive rights to possess and use property and its profits

Answer 14

property rights

Question 15

technological or creative work

Answer 15

intellectual property

Question 16

exclusive right of an inventor to make, sell, use product or process

Answer 16

patent

Question 17

distinctive name, symbol, word, picture, combination of these used to identify products/services

Answer 17

trademark

Question 18

illegal uses of intellectual property, patents, trademarks, copyrights

Answer 18

counterfeiting

Question 19

protects original works of authors, composers, playwrights, artists and publishers

Answer 19

copyright