Which of the following is true of offering direct credit to customers?
A. It discredits the business's reputation.
B. It always decreases business risk.
C. It ensures on-time payment from customers.
D. It increases sales for the business.
Answer: D
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Entrepreneurship Chapter 17
- Which of the following statements is true of joint ventures?
- Partnerships through which two or more businesses combine to undertake a specific economic activity are called _____.
- The most highly desired form of insurance for most employees is _____.
- The most common type of disability coverage is _____ which provides funds to the business to purchase the ownership position of a disabled partner.
- Which of the following is true regarding buyout insurance?
- ___ is a form of insurance that does not accumulate any value over the contract period.
- ____ is the most common kind of coverage on key persons of a business.
- Which of the following statements is true regarding credit insurance?
- ____ repay employers for losses caused by dishonest or negligent employees.
- A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.
- Fidelity bonds help to:
- ___ insurance is normally included in insurance on physical assets.
- The computers at a graphics design company were stolen recently. Which of the following insurance that the company holds will repay the losses incurred?
- _____ provides funds to pay the ordinary operating expenses of a business should it be forced to close temporarily because of an insured event.
- Which of the following is true of co-insurance?
- _____ is a contract requirement that works to prevent property owners from deliberately underinsuring.
- Crux Inc. and Synapse Inc. are two competing businesses in the same city. They use the services of the same insurance company and have taken the same policy. Crux has a higher deductible than Synapse for the policy. Which of the following statements would be true in this case?
- A(n) _____ is an amount of loss that is specifically excluded by the insurance contract.
- Which of the following is true of insuring the property of a business?
- Insurable value is defined as:
- ____ are used to pay losses that are not covered by other liability insurance.
- Which of the following is an example of a special type of liability insurance that covers losses from harm caused during the performance of a profession?
- Liability insurance protects a business against:
- Which of the following is true of insurance coverages?
- The most common mandatory insurance coverage includes: