In: Economics
1. Indicate if the following is loss prevention, loss reduction, separation or avoidance:
You installed a fire sprinkler system in your warehouse.
You put one set of keys in your pocket and another set in your glove compartment.
You do not want to get into a car accident so you never get into a car.
You lock your car every night.
Two business executives take different flights to the same meeting.
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2. Indicate if the statements below are examples of a property risk, a liability risk, and a personal risk or a commercial risk. Each answer should have two responses.
A family home has burned down. EXAMPLE ANSWER: Property & Personal
An employee sues a business for wrongful termination
A women’s jewelry was stolen from her jewelry box
A warehouse is hit by a hurricane and destroyed
A warehouse is hit by a hurricane but is okay, the warehouse stored equipment for a business down the street and all the equipment is ruined. There was a contract that the warehouse owner would keep the equipment safe.
A doctor botches a routine surgery and the patient dies
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3. State if the following is an example of legal liability, answers should be yes or no:
A warehouse is hit by a hurricane but is okay, the warehouse stored equipment for a business down the street and all the equipment is ruined. There was a contract that the warehouse owner would keep the equipment safe.
A tenant moves into an apartment and signs a lease
A neighbor helps his neighbor pick up trash in the street
A person borrows a moped to drive around town and doesn’t return it
A contractor signs a contract to replace a roof on a municipal building
Indicate if the following is loss prevention, loss reduction, separation or avoidance)
A)You installed a fire sprinkler system in your warehouse.= Loss prevention because you installed the fire sprinklers so that incase a fire breaks out the fire would be prevented from spreading and would be taken out by the sprinklers.
B)You put one set of keys in your pocket and another set in your glove compartment.= Loss reduction because you have put the chances of risk in 50-50 because if u had 2 sets of key in your pocket and u lost both of them the loss would be 100%. As u have divided the keys into places the risk is divided into 50-50 that's why it's loss reduction.)
C)You do not want to get into a car accident so you never get into a car.= Loss prevention because you prevented the situation from arising or arriving to that point as you will only have a car accident only if u get in the car. So it's loss prevention.
D)You lock your car every night.= Loss prevention because this is a step u take every night by locking the car so that you may not come to a situation of theft so u prevented it from getting stolen by locking it every night
E) Two business executives take different flights to the same meeting. = Separation or avoidance because this is a situation where both the business men are headed to the same destination but take different flight which they could have taken the same flight or due to some reason they couldn't so it's is separation or avoidance.