115. __________ insurance provides benefits to the survivors of workers who die as a result of
work-related injuries.
116. The risk of environmental harm is __________ in its proportions on issues such as global
warming.
117. A characteristic of a health savings account that distinguishes it from other types of
health care coverage is that it:
118. Workers’ compensation insurance:
119. Risk management now includes the evaluation of:
120. Sasha has a small jewelry business with only four employees. He started his business the
month before last and so far he makes just enough to pay his bills each week. Yesterday, just
before the end of his first quarter in business, he received a notice from the government
indicating that he needed to provide evidence of workers’ compensation insurance. Sasha:
121. Trevino is a silversmith and works with various metals. At the end of the day, he reclaims
and separates each metal by using an inexpensive toxic acid though other methods are available.
The risk of fire as well as health dangers to Trevino is unknown. Trevino should:
Mini-Case
The Bookworm is a bookstore and café located on a busy downtown main street in Denver. The
owner, Waata Reader, prides himself on the vast selection of books available in the store. The
store has three stories, with both stairs and an elevator to each level. In the back of the first floor
is the café, which serves pastries and coffee drinks. Many times customers will linger there over
a cup of coffee, deciding which book to purchase. Waata has expanded several times and now
has 22 people on the staff.
122. Bookworm sales have been down for the last year due to new competition from a national
chain and Waata is understandably concerned. He recently called his insurance agent to see if
this downturn in sales was covered by his business policy. The agent, Will B. Safe, told Waata:
123. One of Waata’s staff members has been out on sick leave because she had an emergency
appendectomy. She brought the hospital bills in to Waata for his opinion. It seems she had been
covered by two health insurance policies for some time and now she thinks she may be able to
collect from both companies in payment for the operation. Waata assured his employee that:
124. When one of Waata’s employees was stocking a particularly high shelf one morning he
reached a bit too far and fell off the ladder. Luckily he just broke his arm and returned to work
later that day. His medical bills due to this accident were covered under:
125. One afternoon Waata was called to the café. One of Waata’s staff had inadvertently
spilled hot coffee on a customer’s arm and the customer was left with a burn. Waata sent the
customer off to the local hospital for treatment knowing that his __________ insurance would
cover the claim.
126. Explain the four ways of managing risk.
127. Explain the difference between speculative risk and pure risk. Which type of risk is of
more concern to businesspeople?
128. Explain what makes the acceptance of risk possible for insurance companies.
129. Explain the benefits of workers’ compensation. Who is required to carry this type of
insurance?