LAW 122 final exam notes chapter 1>11 ,question and answers 100% verified

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LAW 122 final exam notes chapter 1>11 ,question and answers 100% verified Business law Chapter 1: Risk Management • Why Study Law as Business Students? o Goal of business is to... make money o Knowledge of Law – leads to greater risk management, reduces potential costs, increases potential profits o All Business Choices have Legal Consequences o Legal Education Plays a Critical Role in Risk Management • What Is Risk Management ? o “The process of identifying, evaluating, and responding to the possibility of harmful events” 3 steps to Risk Management: 1. identification: recognition of legal risks “can we be held liable for doing something wrong?” 2. evaluation: assessment of legal risks “whAAat are the chances of something going wrong?” 3. response: reaction to legal risks “what are we going to do about it?” • Nearly every business decision creates some risk • Risk Strategies: o Avoidance - not engage in risky business activity (not sell certain product or service ie. cars with exploding fuel tanks) o Reduction - reduce occurrence of risk by modifying business practices (wiping floor if wet) o Shifting – shift risk to another party through contract or through insurance policy (purchase insurance for car accident) o Acceptance – sometimes appropriate for business to accept the risk (lucrative contract) o Examples of Risk Management: [Show More]

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