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ARISI UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMIC


DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Test # 1 Mark 20%
NAME: ________________________________ID________________DEP__________________
Part one: True / false items (1 point each)
1. Hazard is a condition that stimulates or increase the chance of loss arising out from a give peril.
2. particular risk is a risk that affects the entire economy or large number of person or groups
Part Two: Multiple choice items (2 point each)
1.

Of the following classification of risk which one is caused by change in economy


A. Financial risk
B. Speculative risk
C. pure risk

D. Static risk
E. Dynamic risk

2. The definition of peril is:


A. The uncertainty concerning loss
B. The actual cause of loss
C. A measure of the accuracy with which a loss can be predicted
D. The percentage of an event which will cause a loss will happen.
3. One of the following is not a physical hazard.
A. Defective locking.

C. Ice road.

B. Defective behaviour. D. Defective wiring.


4. Mr. Matiwose may commit an act that results in physical (body) injury to Mr. biruk or
damage to biruks property. A court of law may order Matiwose (the person responsible for
wrongful act) to pay damage to Biruk (the person who was injured). For Matiwose this type
of risk is best described as:
A.
B.
C.
D.

Direct property risk


Indirect property risk
Personal risk
liability risk/third party

Part III. Short answer


1. List and clearly explain the four types of personal risk (3 point).
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2. List and clearly explain the three types of hazards.(3 point)
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3. What is the difference between objective and subjective risk? Explain your response
by supporting it with examples (4 point).
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