Due to the nature of their merchandise, designer boutiques must offer their customers access to the merchandise. Which of the following prevention methods allows access to the merchandise, but sets off an alarm if unpaid merchandise is taken from the store?

1.   ?    Closed-circuit television
2.   ?    Electronic sensors
3.   ?    Locked display cases
4.   ?    Two-way mirrors

Businesses try to avoid employee theft by:

1.   ?    Educating employees on shoplifting prevention techniques
2.   ?    Making sure that alarms are set and doors are locked at night
3.   ?    Providing adequate lighting and orderly displays
4.   ?    Utilizing pre-employment testing to determine attitudes about honesty

A local convenience store makes sure that two employees are always on duty during the later night hours. How is this business dealing with business risk?

1.   ?    Avoidance
2.   ?    Reduction
3.   ?    Retention
4.   ?    Transfer

An employee at the Fisherman's Daughter gift shop stole thousands of dollars from the business. The business recovered this loss because they had purchased:

1.   ?    Casualty insurance
2.   ?    Errors-and-omissions insurance
3.   ?    Fidelity bonds
4.   ?    Performance bonds

A surf shop experienced a lot of shoplifting last year. The manager decided to hire undercover security guards. This is an example of managing risk by:

1.   ?    Ignoring it
2.   ?    Reducing it
3.   ?    Retaining it
4.   ?    Transferring it

Elvin was injured on his construction job. During recovery, he will continue to receive compensation because his employer is required to make contributions to:

1.   ?    Errors-and-omissions insurance
2.   ?    Fidelity bonds
3.   ?    On-the-job training
4.   ?    Workers' compensation

Hurricane Floyd damaged many businesses across North Carolina. The possibility that such storms will occur presents a/an:

1.   ?    Economic risk
2.   ?    Environmental risk
3.   ?    Human risk
4.   ?    Natural risk

A business owner installed an alarm system in the business. How did this business owner choose to deal with risk?

1.   ?    Accept
2.   ?    Avoid
3.   ?    Reduce
4.   ?    Transfer

A customer falls while entering a business. What type of insurance protects the business from a potential lawsuit resulting from the accident?

1.   ?    Casualty insurance
2.   ?    Fidelity insurance
3.   ?    Life insurance
4.   ?    Product liability insurance

In order to reduce the risk of robbery, businesses should:

1.   ?    Check and service safety equipment on a regular basis
2.   ?    Educate employees on safe use of equipment
3.   ?    Install surveillance cameras
4.   ?    Schedule only one person per shift

An armed robber steals $400 from a business. This is a/n:

1.   ?    Economic risk
2.   ?    Human risk
3.   ?    Natural risk
4.   ?    Risk transfer

A customer is caught stealing merchandise from a gift shop. This is a/n:

1.   ?    Economic risk
2.   ?    Human risk
3.   ?    Natural risk
4.   ?    Speculative risk

A rising inflation rate causes prices to increase. This represents a/an:

1.   ?    Economic risk
2.   ?    Human risk
3.   ?    Monetary risk
4.   ?    Natural risk

In order to reduce the risk of shoplifting, businesses should:

1.   ?    Employ the use of two-way mirrors
2.   ?    Handle bank deposits discreetly
3.   ?    Provide adequate outside lighting
4.   ?    Utilize pre-employment testing

Risking a financial loss to make a profit is a/an:

1.   ?    Economic risk
2.   ?    Human risk
3.   ?    Pure risk
4.   ?    Speculative risk

When risk transfer is impossible, a business must deal with risk retention by:

1.   ?    Applying for government assistance
2.   ?    Handling bank deposits discreetly
3.   ?    Purchasing various types of insurance
4.   ?    Saving money to cover possible loss

A recession represents a/an:

1.   ?    Economic risk
2.   ?    Human risk
3.   ?    Monetary risk
4.   ?    Natural risk