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SB Module 13

QuestionAnswer
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
Created by: mrsljohnson
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