Question 1

Which of the following represents the problem with legal protection methods for intellectual property?

Accepted Answer

A)   There is no governmental agency that will assist small business owners in maintaining their legal rights.
B)   The cost of legal protection for intellectual property is so high that it is practically useless for a small business owner.
C)   Legal protection methods for intellectual property are primarily "reserved" for large businesses.
D)   Legal protection methods can only be offered for tangible property and not intellectual property.
E)   Holding legal rights to intellectual property provides the owner solely with grounds to pursue lawsuits against infringement.F) A) and D)
G) A) and C)

Question 2

The OSHA is a commission established to enforce the provisions of the Equal Employment Opportunity Act.

Accepted Answer

A) True 
 B)False

Question 3

The risk from customers primarily arises from:

Accepted Answer

A)   injuries suffered while on business property.
B)   high prices of the products or services.
C)   discontent with the customer service provided by the business.
D)   not being provided credit to purchase products.E) C) and D)
F) All of the above

Question 4

_____ repay employers for losses caused by dishonest or negligent employees.

Accepted Answer

A)   Credit insurance
B)   Business interruption insurance
C)   Surety bonds
D)   Fidelity bondsE) A) and B)
F) A) and C)

Question 5

Martin,an employee at a boutique store,is required to handle store displays and also ensure that all the sales records tally at the end of each business day.However,he committed fraud by recording fake sales and then keeping the products to himself.Which of the following managerial concepts would have helped the store avoid this deception?

Accepted Answer

A)   Adverse possession
B)   Separation of duties
C)   Accession
D)   Rule against perpetuitiesE) C) and D)
F) A) and B)

Question 6

A contract between two or more parties in which one party agrees,for a fee,to assume the risk of another is called _____.

Accepted Answer

A)   coverage
B)   insurance
C)   separation of duties
D)   bailmentE) A) and B)
F) All of the above

Question 7

Which of the following practices should be adopted to ensure that a computer is kept secure?

Accepted Answer

A)   Writing down all your passwords where it's easily accessible
B)   Using the same password for long durations
C)   Setting a PC to lock itself up after a few minutes of inactivity
D)   Opening downloads from unexpected sourcesE) B) and C)
F) A) and C)

Question 8

The _____ is a series of acts by Congress that prohibit discrimination on the basis of race,color,religion,sex,or national origin.

Accepted Answer

A)   Civil Rights Act of 1991
B)   Age Discrimination in Employment Act of 1967
C)   Americans with Disabilities Act of 1990
D)   Rehabilitation Act of 1973E) A) and D)
F) A) and C)

Question 9

Which of the following statements is true of joint ventures?

Accepted Answer

A)   It requires both partners involved to allocate revenues and expenses equally between them.
B)   It is not considered a separate entity from any of the partners that own it.
C)   It does not require its partners to lose more than what each partner has invested in it.
D)   It is never taxed as a partnership.E) B) and C)
F) A) and D)

Question 10

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?

Accepted Answer

A)   Understate revenues and overstate deductible expenses
B)   Reconcile the cash register tape to the cash register contents every day
C)   Take cash from the businesses before it is recorded as revenue
D)   Borrow from tax money in order to make payments to creditorsE) A) and B)
F) A) and D)

Question 11

In managing risk from violation of tax regulations,small business owners should make paying taxes their first financial priority.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following helps manage risks to physical assets of a business?

Accepted Answer

A)   Employees should be allowed easy access of physical assets to assist them with their work.
B)   Inspections should be deemed necessary only when an item is reported missing.
C)   A manager's signature must be required to confirm that an item has been returned to its proper storage.
D)   Only clerical-level employees need to sign for removing items from storage.E) A) and B)
F) A) and C)

Question 13

Liability insurance protects a business against:

Accepted Answer

A)   disgruntled former employees filing suites.
B)   current employees setting up businesses which turn into competition for the organization.
C)   losses incurred due to the death of a key employee.
D)   claims from harm caused by inadvertent consequences of actions of the business or its employees.E) All of the above
F) B) and C)

Question 14

What are fidelity bonds?

Accepted Answer

Fidelity bonds,also called dishonesty bo...

Question 15

_____ are programs or pieces of equipment which serve as a barrier between a PC and the Internet.

Accepted Answer

A)   Ethernets
B)   Firewalls
C)   Hubs
D)   SpywaresE) All of the above
F) None of the above

Question 16

What is credit insurance?

Accepted Answer

Credit insurance covers abnormal losses ...

Question 17

The level of probability that the future economic state of the business will be worse than expected is referred to as _____.

Accepted Answer

A)   business risk
B)   economic certainty
C)   business continuity
D)   business amortizationE) A) and C)
F) A) and B)

Question 18

States of being that are expressly prohibited from suffering discrimination are called _____.

Accepted Answer

A)   vulnerable groups
B)   endangered sections
C)   protected classes
D)   ethnic majoritiesE) A) and B)
F) None of the above

Question 19

Risk is the probability that future economic state of the business will be better than expected.

Accepted Answer

A) True 
 B)False

Question 20

_____ are used to pay losses that are not covered by other liability insurance.

Accepted Answer

A)   Unemployment insurance
B)   Worker's compensation insurance
C)   General liability insurance
D)   Product liability insuranceE) B) and C)
F) All of the above

Exam 17: Small Business Protection: Risk Management and Insurance

Which of the following practices should be adopted to ensure that a computer is kept secure?

Correct Answer
verified

_____ are programs or pieces of equipment which serve as a barrier between a PC and the Internet.

Correct Answer
verified

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?

Correct Answer
verified

_____ are used to pay losses that are not covered by other liability insurance.

Correct Answer
verified

In managing risk from violation of tax regulations,small business owners should make paying taxes their first financial priority.

Correct Answer
verified

The risk from customers primarily arises from:

Correct Answer
verified

A contract between two or more parties in which one party agrees,for a fee,to assume the risk of another is called _____.

Correct Answer
verified

_____ repay employers for losses caused by dishonest or negligent employees.

Correct Answer
verified

States of being that are expressly prohibited from suffering discrimination are called _____.

Correct Answer
verified

The level of probability that the future economic state of the business will be worse than expected is referred to as _____.

Correct Answer
verified

Correct Answer
verified

The _____ is a series of acts by Congress that prohibit discrimination on the basis of race,color,religion,sex,or national origin.

Correct Answer
verified

Risk is the probability that future economic state of the business will be better than expected.

Correct Answer
verified

Which of the following represents the problem with legal protection methods for intellectual property?

Correct Answer
verified

Liability insurance protects a business against:

Correct Answer
verified

The OSHA is a commission established to enforce the provisions of the Equal Employment Opportunity Act.

Correct Answer
verified

What are fidelity bonds?

Correct Answer
verified
Fidelity bonds,also called dishonesty bo...
View Answer

Which of the following statements is true of joint ventures?

Correct Answer
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What is credit insurance?

Correct Answer
verified
Credit insurance covers abnormal losses ...
View Answer

Which of the following helps manage risks to physical assets of a business?

Correct Answer
verified

Exam 17: Small Business Protection: Risk Management and Insurance

Which of the following practices should be adopted to ensure that a computer is kept secure?

Correct AnswerverifiedShow Answer

_____ are programs or pieces of equipment which serve as a barrier between a PC and the Internet.

Correct AnswerverifiedShow Answer

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?

Correct AnswerverifiedShow Answer

_____ are used to pay losses that are not covered by other liability insurance.

Correct AnswerverifiedShow Answer

In managing risk from violation of tax regulations,small business owners should make paying taxes their first financial priority.

Correct AnswerverifiedShow Answer

The risk from customers primarily arises from:

Correct AnswerverifiedShow Answer

A contract between two or more parties in which one party agrees,for a fee,to assume the risk of another is called _____.

Correct AnswerverifiedShow Answer

_____ repay employers for losses caused by dishonest or negligent employees.

Correct AnswerverifiedShow Answer

States of being that are expressly prohibited from suffering discrimination are called _____.

Correct AnswerverifiedShow Answer

The level of probability that the future economic state of the business will be worse than expected is referred to as _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The _____ is a series of acts by Congress that prohibit discrimination on the basis of race,color,religion,sex,or national origin.

Correct AnswerverifiedShow Answer

Risk is the probability that future economic state of the business will be better than expected.

Correct AnswerverifiedShow Answer

Which of the following represents the problem with legal protection methods for intellectual property?

Correct AnswerverifiedShow Answer

Liability insurance protects a business against:

Correct AnswerverifiedShow Answer

The OSHA is a commission established to enforce the provisions of the Equal Employment Opportunity Act.

Correct AnswerverifiedShow Answer

What are fidelity bonds?

Correct AnswerverifiedFidelity bonds,also called dishonesty bo...View AnswerShow Answer

Which of the following statements is true of joint ventures?

Correct AnswerverifiedShow Answer

What is credit insurance?

Correct AnswerverifiedCredit insurance covers abnormal losses ...View AnswerShow Answer

Which of the following helps manage risks to physical assets of a business?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Fidelity bonds,also called dishonesty bo...
View Answer

Correct Answer
verified

Correct Answer
verified
Credit insurance covers abnormal losses ...
View Answer

Correct Answer
verified