Podcast
Questions and Answers
Which risk can a business typically manage through insurance?
Which risk can a business typically manage through insurance?
- Changes in government policies
- Market recession
- Damage to goods/property (correct)
- Changes in fashion and customer preferences
What is a significant way a business can minimize non-insurable risks?
What is a significant way a business can minimize non-insurable risks?
- Market forecasting techniques
- Implementing comprehensive insurance policies
- Engaging in proper planning and preparedness (correct)
- Developing new market trends
How do modern businesses generally view their social responsibility?
How do modern businesses generally view their social responsibility?
- As an obligation to their stakeholders (correct)
- As a legal requirement only
- As a marketing strategy for increasing sales
- As a secondary concern after profit maximization
Which of the following best represents a societal interest for modern businesses?
Which of the following best represents a societal interest for modern businesses?
What is one responsibility businesses have toward their employees?
What is one responsibility businesses have toward their employees?
Flashcards
Business risks
Business risks
Potential problems or uncertainties impacting a company's operations and profitability.
Insurable risks
Insurable risks
Risks that can be covered by insurance, e.g., fire or theft.
Non-insurable risks
Non-insurable risks
Risks that cannot be covered by insurance, e.g., fashion trends, economic downturns.
Social responsibility (Business)
Social responsibility (Business)
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Stakeholders
Stakeholders
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Study Notes
Risks and Uncertainties
- Businesses face risks and uncertainties.
- Risks can lead to losses.
- Examples of risk events include:
- Market recession
- Changes in customer preferences
- Changes in government policies
- Changes in technology
- Damage to property (fire, natural disasters)
- Civil unrest
- Insurance can mitigate some risks (e.g., fire, theft)
- Non-insurable risks can be mitigated through planning and preparedness.
Societal Interest
- Modern businesses prioritize societal well-being.
- Businesses strive to balance profits, customer satisfaction, and public interest.
- Businesses are increasingly producing eco-friendly products.
Social Responsibility
- Modern businesses are conscious of their social responsibility
- Businesses attempt to meet their responsibilities to various stakeholders:
- Employees (fair wages, good working conditions, welfare benefits)
- Customers (quality products at reasonable prices)
- Government (paying taxes and duties)
- Shareholders (maximizing wealth)
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