44.
Health insurance is less frequently used in small firms.
45.
Insurance companies treat large and small businesses alike.
46.
Key person insurance insures the lives of important employees.
47.
A Corporate Owned Life Insurance (COLI) is useful for the small business which has key
employees with specific talents or experience that would be hard to replace.
48.
Surety bonds provide protection against the failure of a contractor to fulfill contractual
obligations.
49.
Independent insurance agents represent more than one insurance company.
50.
An offer of a new policy to replace one that is flawed implies a red flag in the process of
choosing an insurer.
51.
In practice, the premiums of mutual companies and reciprocals are substantially lower
than those of profit-making companies.
52.
A small business can reduce the costs of insurance by raising its deductible.
53.
It is impossible to identify the areas that are particularly susceptible to crime.
54.
Criminal acts have forced not only small but even large businesses into insolvency.
55.
Locations that afford easy access and relatively secure escape routes are particularly
invulnerable to armed robberies.
56.
In high-crime neighborhoods, many businesses use tough, shock-resistant transparent
materials in their windows instead of glass as a security measure.
57.
Dogs are considered to be effective deterrents against armed robbers.
58.
Making daily cash deposits and varying the deposit time from day to day are highly
recommended to keep the probability of armed robberies down.
59.
Theft by employees is referred to as shoplifting by retailers.
60.
Construction contractors have found that purchasing materials for just-in-time delivery
increases the risk of theft.
Essay Questions
61.
What is risk management? How can it help a firm?
62.
Describe the two types of risks that small business owners face.
63.
What are the different ways of coping with risk?
64.
What are the different types of insurances that a small business owner mostly needs?
65.
What should owners of small businesses do to ensure the safety of their workers?
66.
What is business insurance and what is its importance?
67.
List some red flags to look for when choosing an insurer.
68.
List some measures that small business owners can take to prevent crime and reduce
workplace violence.
69.
What are the consequences of employee theft? What are the different techniques that
retailers can use to help prevent theft?
70.
Define white-collar crime. What are the different ways to minimize white-collar crimes?