quiz ch.12-13 Flashcards
How can you prevent employee thefts
do not hire dishonest employees
install surveillance systems
establish a tough company policy
be on the lookout
Controllable Risk/ Uncontrollable Risk
A risk that can be reduced or avoided by actions you take
ex. installing a security camera
A risk on which actions have no effort
Ex. Tropical storm vs. Good weather
International Business Risks
Differences in language
legal and cultural differences
different currency systems (exchange rate)
Factors that determine whether a customer is creditworthy
previous credit history employment records assist owned money available for making payments financial references
Types of business insurance
Business owners policy (BOP
- property insurance
- business interruption insurance
- liability protection
name uninsurable risks
Economic conditions
- changes in competition
- population shifts
- inflation or recession
- government regulations
- world events
The chance to gain or lose from the event or activity.
Ex. Investing in stocks
Speculative Risk
Taking action to prevent or reduce the possibility of loss to your business
Risk Managment
a payment made to an insurance company to cover the cost of insurance
premium
a pure risk face by a large number of people
insurable risk
when a retail business allows its customers to buy merchandise now and pay later
Consumer Credit
a set of standards or rules that outlines the ethical behavior demand by and individual or business
Codes of Ethics
The act of knowingly taking items from a business without payin
Shoplifting
The application of the principles of right and wrong to issues that arise in the workplace
Business ethics
A law that provides benefits to employees who have suffered work-related injury or occupational disease
FECA- Federal Employees Compensation Act
Debtor-creditor relationships can be
voluntary- when a business extends a credit to customers
involuntary- when the delivery driver of a small business at fault in a traffic accident
