Match the words with their definitions. In each of the following, select the word or phrase that best completes the statement or answers the question

IV. WORD STUDY

In each of the following, select the word or phrase that best completes the statement or answers the question.

III. Comprehension

1. 1) How can risks be defined?

2) What risks are faced by the small firms?

3) What is the best way to protect a business again: the risk of financial hardship?

4) What can be done to handle the risks?

5) What are the most effective ways of keeping losses to a minimum?

6) 6) What is meant by "shifting the risk" as a means of coping with possible loss?

1) What of most small firms is represented by its inventory and buildings?

a. the property	c. the capital
b. the workforce	d. the fund

2) Who gives employers responsibility for the health and safety of employees when they are performing their duties?

a. the firm	c. the state
b. the manager	d. legislation

3) Protection against losses due to inability to collect accounts receivable can be

a. well-organised	c. cheap
b. expensive	d. well-done

4) Losses through dishonest employees can be in the form of

a. cash	c. securities
b. merchandise	d. all of these

5) When business owners are aware of the existing risks they may

a. appeal to the insurance company

b. pay their attention to the matter of how to handle them

c. run their business successfully

6) A self-insurance plan is

a. a plan to cope with losses

b. a capital spending plan

c. a specified amount set aside in a reserve fund each year

7) Fire Insurance is property insurance that covers risks of

a. the damage of water	c. the damage of smoke
b. fire	d. all of these

8) Hedging is a device to

a. run business	c. make profits
b. protect profits	d. keep accounting records

INVENTORY, PROPERTY, ACCOUNT RECEIVABLE, HEDGING, PROFIT, DAMAGE, LEGISLATION, EXPENSIVE, SECURITIES, SELF-INSURANCE

1) The difference between the price received for a product and the amounts paid as rewards to the factors of production.

2) An operation adopted by merchants and others in the commodity markets who deal in futures to protect themselves against risk of loss, caused by future changes in price.

3) Any thing that has value and can be owned, including things having substance, such as land, money, etc.

4) Investments generally, especially stocks, shares and bonds which are bought as investments.

5) The accumulation of a fund of money as a reserve to provide for possible losses in the future that, could easily have been insured with in insurance company.

6) Stocks held by a business for sale to its customers; a detailed list of things.

7) Dear; costing much money; needing great expense; high priced.

8) Laws, especially statute laws, i. e. Acts of Parliament in Britain, Acts of Congress in USA.

9) A sum of money due to be received from a customer in the ordinary course of trade but not yet paid. A

10) Harm; loss of value caused by being broken or spoilt.

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