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SB Module 13
Question | Answer |
---|---|
Ethics | Guidelines for human behavior; the study of moral choices and values; choosing between right and wrong. |
Ethical behavior | Knowing the difference between right and wrong and consciously choosing to do right. |
Code of ethics | A systematic set of rules and procedures used to guide the behavior of an individual, a business, or a culture. |
Business ethics | Applying principles of right and wrong to situations in the workplace. |
Risk | The possibility of a financial loss. |
Risk management | The process of managing a business’s exposure to risk in order to achieve business objectives. |
Business risk | The possibility of business failure or loss. |
Speculative risk | Risking loss to make a profit. |
Pure risk | The possibility of loss without any possibility of gain. |
Economic risks | Risks that result from changes in overall business conditions |
Natural risks | Risks resulting from natural causes. |
Human risks | Risks caused by human errors as well as the unpredictability of customers, employees, or the work environment |
Real property | Buildings, land, and fixtures |
Personal property | Any property that is unattached such as clothing, furniture, jewelry, and automobiles |
Errors-and-omissions insurance | Protects businesses from lawsuits resulting from mistakes in advertising. |
Product liability insurance | Protects manufacturers from claims for injuries that result from using their products. |
Fidelity bonds | Protect companies from employee theft. |
Performance bonds | Protect a business if work is not finished on time or as agreed. |
Shoplifting | is a form of external theft that involves taking items from a business without paying for them |
Robbery | Robbery involves the taking of property by violence or threat. |
business interruption insurance | Makes up for lost income if a business is shut down for repairs or rebuilding |
casualty insurance | Protects a business from lawsuits and Pays the claim if a person is injured on your business premises or if a worker causes damage |
life insurance | Pays a business in the event of the insured person’s death |
workers compensation | Government-regulated program which provides medical benefits and income to employees who are injured on the job |
risk retention | self-insurance against business loss |