Unit 6: Risk Flashcards
How could a person who prefers not taking a risk be described as?
Risk-averse; or they tend to advert risks
What is meant by spreading the risk?
Spreading the risk means to invest into multiple fields in case one fails; diversification; don’t put all your eggs in 1 basket
What are the 4 things to do when encountering a risk? and elaborate on them.
Predict: to say what will happen in the future
Meet: to come into the presence of
Assess: to evaluate or calculate
Manage: to be in charge of; to succeed
What is meant by to gauge?
To gauge means to measure or to estimate something
What is an industrial espionage?
Industrial espionage is the practice of spying on other companies to obtain information
What is a shakeout?
A shakeout is an upheaval or reorganization of a business due to competition and typically involving streamlining and layoffs
Elaborate on venture capitalists
Venture capitalists are people who invest money into multiple businesses at a time in hopes of one or two succeeding to get a return.
What is meant by management complacency?
Management complacency is when employees stop being actively engaged in their work, stop solving problems, etc.
What is meant by non-sufficient funds?
Non-sufficient funds (NSF) is when the holder of a checking account is overdrawn; sometimes referred to as a dishonored cheque
What is a terms of payment; what is the most common type of it?
A terms of payment is a documentation that details how and when your customers pay for your goods or services; the most common type is a 30 days credit, meaning that the buyer has 30 days from the date of the invoice to pay the amount due
What does OAC stands for? elaborate.
OAC stands for on approved credit, meaning that the lease and finance rates advertised are subject to approval based on your credit rating
