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Business Management 1 & 2 > Module 2: Risks, Risk Management, Recruiting Personnel, Federal Legislation for Employees, Training & Compensation (Q3) > Flashcards

Module 2: Risks, Risk Management, Recruiting Personnel, Federal Legislation for Employees, Training & Compensation (Q3) Flashcards

1
Q

Risk

A

The possibility of suffering harm or loss

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2
Q

Business Risk

A

The possibility of losses associated with the asset and earning potential of a firm

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3
Q

Market Risk

A

The uncertainty (gain or loss) associated with an investment decision

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4
Q

Pure Risk

A

The uncertainty associated with a situation where only loss or no loss can occur
- There is no potential for gain
- Only pure risk is insurable

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5
Q

Types of Pure Risks

A
  1. Property Risks
  2. Liability RIsks
  3. Personbnel Risks
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6
Q

Types of Property

A

Real Property
Personal Property

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7
Q

Real Property

A

Land and anything attached to the land, such as buildings

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8
Q

Personal Property

A

Any property other than real property, including machinery, equipment, inventory, and vehicles

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9
Q

Ways that property can be valued (appraised)

A
  1. Replacement Value of Property
  2. Actual Cash Value (ACV)
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10
Q

Replacement Value of Property

A

The cost of replacing personal property and rebuilding real property at today’s price

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11
Q

Actual Cash Value (ACV)

A

An insurance term that refers to the depreciated value of the property

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12
Q

Types of Liability

A

Statutory Liability
Contractual Liability
Tort Liability
Product Liability

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13
Q

Statutory Liability

A
  • Workers’ compensation legislation.
  • Laws that obligate an employer to pay employees for injury or illness related to employment, regardless of fault.
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14
Q

Contractual Liability

A
  • Indemnification clause.
  • A contractual clause that requires one party to assume the financial consequences of another party’s legal liabilities.
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15
Q

What are torts?

A

Wrongful acts or omissions for which an injured party can take legal action against the wrongdoer for monetary damages.

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16
Q

What elements must be present for someone to be found guilty of a tort?

A
  1. Existence of a legal duty between the parties.
  2. Failure to provide the appropriate standard of care.
  3. Presence of injury or damages
  4. Evidence of Proximate Cause: Evidence of a negligent act that is the clear cause of damages sustained.
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17
Q

Product Liability

A

Manufacturing Defects
Design Defects
Marketing Defects

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18
Q

Risk Management

A
  • Ways of coping with risk that are designed to preserve the assets and earning power of a firm.
  • It is concerned with finding the best possible way to reduce the costs of dealing with risk
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19
Q

Process of Risk Management

A
  1. Identify and Understand Risks
  2. Evaluate the potential severity of risks
  3. Select methods to manage risk
  4. Implement the decision
  5. Take Action
  6. Review and Evaluate
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20
Q

Types of Risk Controls

A
  1. Eliminate risks
  2. Minimize Risk
  3. Shift Risk
  4. Absorb Risk
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21
Q

Risk Financing

A

Making funds available to cover losses that can not be eliminated by risk control

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22
Q

Risk Financing

A

Making funds available to cover losses that can not be eliminated by risk control
Risk Transfer
Risk Retention
Self-Insurance

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23
Q

Types of Insurance

A
  1. Property Insurance
  2. Commercial General Liability Insurance (CGL)
  3. Automobile Insurance
  4. Workers’ Compensation Insurance
  5. Health Insurance
  6. Key-Person Life Insurance
  7. Disability Insurance
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24
Q

Types of Property Insurance

A
  1. Named-Peril Approach
  2. All-Risk Approach
  3. Coinsurance Clause
  4. Business Interruption Insurance
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25
Q

Commercial General Liability Insurance (CGL)

A

Coverage for general liability loss exposure, including premises liability, operations liability, product liability, and completed operations liability.

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26
Q

Automobile Insurance

A

Coverage designed to provide liability and physical protection for a vehicle

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27
Q

Workers’ Compensation Insurance

A

Coverage that provides benefits to employees injured at work

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28
Q

Types of Health Insurance

A
  1. Health Maintenance Organizations (HMOs)
  2. Preferred Provider Organizations (PPOs)
29
Q

Types of Life Insurance

A

Key-Person Life Insurance
Disability Insurance

30
Q

Key-Person Life Insurance

A

Coverage that provides benefits to a firm upon the death of key personnel

31
Q

Disability Insurance

A

Coverage that provides benefits to a key employee upon his/her disability

32
Q

Workplace Diversity

A

Differences among employees on such dimensions as gender, age, and race

33
Q

Steps for Selecting Employees

A
  1. Use application forms
  2. Interview the applicants
  3. Check references and other background information, and social media
33
Q

Job Analysis

A

The process of determining the critical components of a job for the purpose of selecting, training, and rewarding personnel

34
Q

Job Description

A

An outline, or summary, of the work to be performed for a particular position

35
Q

Job Specification

A

A list of the knowledge, skills, abilities, and other characteristics needed to perform a specific job

36
Q

Civil Rights Act

A
  • Legislation prohibiting discrimination based on race, color,religion, sex, or national origin.
  • Applies to any employer or union with 15 or more employees
37
Q

Age Discrimination in Employment Act

A
  • Prohibits discrimination in employment against those over 40 years of age
  • Applies to employers with 20 or more employees, unions with 25 or more members, employment agencies, federal, state, and local governments
38
Q

Equal Pay Act

A
  • Prohibits discrimination in pay based on the sex of the worker
  • Applies to employers who engage in interstate commerce and most federal, state, and local governments
39
Q

Vietnam Era Veteran Readjustment Act

A
  • Prohibits discrimination in employment against Vietnam-era veterans.
  • Applies to federal government contractors with contracts over $10,000
40
Q

Immigration Reform Act

A
  • prohibits non-documented persons from employment in the United States
  • Applies to all employers
41
Q

Americans with Disabilities Act (ADA)

A
  • Prohibits discrimination against any qualified individual with a disability
  • Applies to firms with over 15 employees
42
Q

Fair Labor Standards Act (Wage and Hour)

A
  • Federal law that establishes a minimum wage and provides for overtime pay.
  • Applies to all businesses
43
Q

Occupational Safety and Health Act (OSHA)

A

Legislation that regulates the safety of workplaces and work practices.

44
Q

Family and Medical Leave Act

A
  • Legislation that assures employees of unpaid leave for childbirth or other family needs
  • Applies to all businesses
45
Q

Employee Training

A

Planned efforts to help employees master
the knowledge, skills, and behaviors they need to perform their duties.

46
Q

Management Development

A
  • Preparation of employees for career advancement through education, job experiences, network development, and performance assessment.
47
Q

On-The-Job Training

A

Instruction at the place of employment,
supervised by a professional trainer or experienced employee.

48
Q

Types of Employee Compensation

A
  • Wage and Salary Levels
  • Financial Incentives
  • Stock Incentives
  • Employee Benefits
49
Q

Types of Employee Compensation

A
  • Wage and Salary Levels
  • Financial Incentives
  • Stock Incentives
  • Employee Benefits
50
Q

Piecework

A

Financial incentives based on the number of units produced

51
Q

Employee Benefits

A
  • Supplements to compensation, designed to be attractive and useful to employees.
  • May include such things as vacation time, holidays, health insurance, and retirement compensation.
52
Q

Insurance

A

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses

53
Q

Worker’s Compensation Insurance

A

Coverage that provides benefits to employees injured at work

54
Q

Key Person Life Iinsurance

A

Coverage that provides benefits to a firm upon the death of key personnel.

55
Q

Civil Rights Act

A

Legislation prohibiting discrimination based on race, color, religion, sex, or national origin.

56
Q

Age Discrimination in Employment Act

A

Prohibits discrimination in employment against those over 40 years of age

57
Q

Equal Pay Act

A

Prohibits discrimination in pay based on the sex of the worker

58
Q

Immigration Reform Act

A

prohibits non-documented persons from employment in the United States

59
Q

Family Medical Leave Act

A

Legislation that assures employees of unpaid leave for childbirth or other family needs (applies to all businesses)

60
Q

Bonafide OCC qualification

A

A qualification that is absolutely necessary for the job. It is an allowed and approved reason for discrimination.

61
Q

Employment Interview

A

The primary way of judging the applicants’ appearance, poise, speech, attitude, knowledge, etc

62
Q

Resume

A

A brief written account of personal, educational, and professional qualifications and experience, as that prepared by an applicant for a job.

63
Q

Job Analysis

A

The process of determining the critical components of a job for the purpose of selecting, training, and rewarding personnel

64
Q

Job Specification

A

A list of the knowledge, skills, abilities, and other characteristics needed to perform a specific job

65
Q

Recruitment

A

The process of identify and evaluate prospects for employment

66
Q

Vietnam Era Veterans Readjustment Act

A

Prohibits discrimination in employment against Vietnam era veterans.

67
Q

Fair Labor Standards Act

A

Federal law that establishes a minimum wage and provides for overtime pay.

68
Q

Employment Application

A

A record that includes an applicant’s name, address, phone number, social security number, and employment history

Business Management 1 & 2 (9 decks)

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