Mod 4 Business

Question 1

Emergency Fund

Answer 1

A savings accounts containing enough money to help you pay for unexpected expenses without going into debt

Question 2

Investment Horizon

Answer 2

The number of years until you need to use the money that you have invested

Question 3

Liquidity

Answer 3

The ease of converting an investment to cash; the easier to convert, the more liquid the investment

Question 4

Asset Allocation

Answer 4

The process of spreading money across several different types of investments to reduce risk

Question 5

Capital Preservation

Answer 5

An investment goal aimed at avoiding loss of funds

Question 6

Large-Cap Stocks

Answer 6

Shares of companies with a market capitalization (i.e, overall equailty value) of more than $10 billion

Question 7

Makert Capitalization

Answer 7

The total vaule of a company’s equity as measured by multiplying its common share price by the number of common shares outstanding

Question 8

Blue-Chip Stocks

Answer 8

Select large-cap shares of industry leaders that have provided their shareholders with stable earnings over a number of years

Question 9

Mutual Fund

Answer 9

A fund that pools money from many investors to purchase a variety of differnet securities and is typically actively managed by a portfolio manager

Question 10

Exchange-Traded Fund (ETF)

Answer 10

A fun that invests in shares or other securities to track the movement of an index or industrial sector

Question 11

Index

Answer 11

A select list of securities that generally reflects the performance of a particular type of investment or market

Question 12

Rate Of Return

Answer 12

The performance of an investment that is measured by divided the dollar amount of the investment gain or loss by the original amount invested; expressed as a percentage

Question 13

Risk Management

Answer 13

The process of identifying and evaluating risks and selecting and managing techniques to adopt to risk exposures

Question 14

Peril

Answer 14

A harzard or a source of danger

Question 15

Speculative Risk

Answer 15

Risk that accompanies that possibility of earning a profit

Question 16

Self-Insurance

Answer 16

The process of establishing a monetary fund that can be used to cover the cost of a loss

Question 17

Insurer (or Insurance Company)

Answer 17

A company that agree, for a fee, to assume financial responsibility for losses that may result from a specific risk

Question 18

Premium

Answer 18

The fee charged by an insurance company

Question 19

Insurance Poilcy

Answer 19

The contract between an insurer and the person or company whose risk is assumed

Question 20

Insurance

Answer 20

The protection against loss that the purchase of an insurance policy affords

Question 21

Insurable Risk

Answer 21

A risk that insurance companies will assume

Question 22

Uninsurance Risk

Answer 22

A risk that insurance companies will not assume

Question 23

Principle Of Indemnity

Answer 23

In the event of a loss, an insured organization or individual cannot collect from the surer an amount greater than the actual dollar amount of the loss

Question 24

The Law Of Large Numbers

Answer 24

Predictions by insurance compnies to calculate premiums based on likelihood that a peril will occur

Question 25

Employment Insurance

Answer 25

Payment of benefits to laid-off workers while they seek new jobs

Question 26

Workers’ Compensation

Answer 26

Payments to cover the expenses of job-related injuries and diseases, including medical costs, rehabilitation, and job retraining if necessary

Question 27

Canada Pension Plan (CPP)

Answer 27

Provides retirement, disability, death, and health benefits

Question 28

Provincial/Territorial Health Care

Answer 28

Health insurance progroms provided by the provinces

Question 29

Extented Coverage

Answer 29

Insurance protection against damage caused by wind, hail, explosion, vandalism, roits or civil commotion, falling aircraft, and smoke

Question 30

Fidelity Bond

Answer 30

An insurance policy that protects a business from theft, forgery, or embezzlement by its employees

Question 31

Public Liability Insurance

Answer 31

Protects the policyholder from financial losses due to injuries suffered by others as a result of negligence on the part of a business owner or employee

Question 32

Product Liability Insurance

Answer 32

Protects the policyholder from financial losses due to injuries suffered by others as a result of using the plocyholder’s products

Question 33

Business Interruption Insurance

Answer 33

Covers costs such as rental of temporary facilities, wage and salary payments to employees, payment for leased equipment, fixed payments, and profits that would have been earned during that period

Question 34

Life Insurance

Answer 34

Pays a stated amount of money on the death of insured individual

Question 35

Beneficiary

Answer 35

Person or organization named in a lofe insurance policy as a recipient of the process of the policy on the death of the insured

Question 36

Term Life Insurance

Answer 36

Provides protection to beneficiaries for a stated period of time

Question 37

WHhole Life Insurance

Answer 37

Life insurance that provides both protection and savings

Question 38

Endowment Life Insuranced

Answer 38

Life insurance tha tprovides protection and guarantees the payment of a stated amount to the policyholder after a specified number of years

Question 39

Cash Surrender Value

Answer 39

The amount of payable to the holder of a whole life insurance policy if the policy is cancelled

Question 40

Universal Life Insurance

Answer 40

Combines insurance protection with an investment plan that offers a potentially greater return than that guaranteed by a whole life insurance policy