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AAMI COMP COMPREHENSIVE REVIEW
2026 VERIFIED SOLUTION SET
โ Self Insurance. Answer: a form of risk management whereby part of the firms earnings is earmarked as a contingency fund for possible future losses, specifically for individual loss categories, such as property, medical, or workers comp. โ Workers Compensation. Answer: insurance coverage that is required by law in most states and covers medical expenses and loss of pay to workers injured on the job. โ Advertising. Answer: the art of making the public aware of the services or commodities that the business has for sale. โ Age Discrimination in Employment Act. Answer: federal legislation that requires employers to treat applicants and employees equally regardless of age. โ American with Disabilities Act.
Answer: legislation that guarantees disabled people equal access to employment, as well as access to public places. โ Angels. Answer: private investors who are willing to supply financing for new/or risky small venture start ups. โ Bona Fide Occupational Qualification. Answer: a qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination. โ Business. Answer: an organization that combines inputs of raw material, capital, labor, and management skills to produce useful outputs of goods and services so as to earn a profit. โ Business Plan. Answer: a written description of a new idea that projects marketing, operational, and financial aspects of a proposed business. โ Business Policies. Answer: fundamental statements that serve as guides to management practice.
โ Civil Rights Act. Answer: federal legislation that prohibits discrimination on the basis of race, color, religion, sex, pregnancy, or natural origin. โ Competition. Answer: the practice of trying to obtain something that is being sought by others under similar circumstances at the same time. โ Consumerism. Answer: the emphasis placed on providing to customers products and services that are safe, reliable, and honestly advertised; also, a social movement that seeks to strengthen the rights of the consumers relative to sellers. โ Copyright. Answer: the registered right of a creator to reproduce, publish, and sell the work which is the product of the intelligence and shill of that person. โ Debt Equity. Answer: any borrowed or loaned capital invested in the business that must be repaid to creditors.
โ Demographics. Answer: the statistical study of human populations with respect to their size, density, distribution, composition, and income. โ Directing. Answer: regulating the activities of an organization; to guide and/or supervise the activities of an organization. โ Earnings Valuation Approach. Answer: a business valuation approach which centers on estimating the amount of potential income that may be produced by the business the next year. โ Economic Order Quantity. Answer: the quantity to be purchased which minimizes the total costs. โ Employment Application. Answer: a record of statements made at the time the applicant first seeks employment. โ Employment Interview. Answer: the primary way of judging the job applicant's appearance, poise, speech, etc.
Answer: outlaws discriminatory practices in pay; requires employers to pay a minimum wage to employees, and to pay a minimum of one week and one-half times the regular rate for any hours beyond forty worked in a week. โ Fixed Capital. Answer: long-term capital that is invested in the small business; also funds invested in such long-term assets as: land, building, machinery, furniture, fixtures, and other equipment. โ Goodwill. Answer: an intangible asset such as the name or reputation of a funeral home; also, an intangible asset which enables a business to earn a profit in excess of the normal rate of profit earned by other businesses of the same kind. โ Human Resource Management. Answer: process of acquiring, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform necessary activities; developing activities and an organizational climate conducive to maximum efficiency and worker satisfaction. โ Immigration Reform Act.
Answer: federal legislation requiring employers to check job applicants papers to be sure they are either U.S. citizens or aliens authorized to work in the U.S. โ Innovation. Answer: the introduction of something new; a new idea, method or device. โ Installment Credit. Answer: balance of costly goods paid for in small monthly payments of a period of time. โ Intangible Assets. Answer: those assets that cannot be touched or grasped. โ Job Analysis. Answer: the process of determining the critical components of a job for purposes of selecting, training, and rewarding personnel. โ Job Description. Answer: a document that lists the major responsibilities and tasks of the job.
โ Market Survey. Answer: a study that is used by businesses to determine where the potential customers are located. โ Market Value Approach. Answer: an approach used in business valuation which determines value based upon previous sales of similar businesses. โ Marketing. Answer: the process of planning and executing the development, pricing, promotion, and distribution of an organization's goods/services. โ Merchandising Business. Answer: a business that purchases finished goods for resale. โ Motivating. Answer: the function of providing incentives to supply the proper quantities of demanded products or services. โ OSHA.
Answer: a governmental agency with the responsibility for the regulatory and enforcement of safety and health matters for most United States employees; an individual state OSHA agency may supersede the U.S. Department of Labor OSHA regulations. โ Open End Credit. Answer: a line of credit that may be used over and over again up to a certain borrowing limit. โ Organizing. Answer: to arrange or constitute in interdependent parts, each having a specific function or relation with respect to the whole; the arrangement and distribution of work among members of an organization. โ Overhead. Answer: expenses incurred in the normal operation of a business. โ Patent. Answer: the registered right of an inventor to make, use, and sell an invention. โ Personal Capital. Answer: capital that is invested in the business by the owners.
โ Service Business. Answer: a business which provides a service rather than a product. โ Small Business. Answer: a business which is independently owned and operated and is not dominant in its field of operations. โ Small Business Administration. Answer: the principal government agency concerned with the financing, operation, and management of small businesses. โ Trademark. Answer: an intangible asset that is a distinct name, sign, or symbol that the federal government grants exclusive rights to use for a specified period of time. โ Venture Capitalist. Answer: anyone who invests in, or financially sponsors, a new business. โ Vietnam Era Veterans Readjustment Act.
Answer: outlaws discrimination in employment against a Vietnam Era Veteran. โ Working Capital. Answer: the difference between current assets and current liabilities. โ Small Business Guidelines. Answer: Financing done by one individual or only a few Operations are local Business is small compared to big competitors Has less than 100 employees โ Most Small Business owners leave their corporate jobs to be their own boss. Answer: True โ 3 Primary Rewards of Entrepreneurs. Answer: Profit Independence Personal Fulfillment
Resolves questions & disputes over purchases after the fact โ Environmentalism. Answer: an effort to preserve & redeem the natural environment โ Examples of internal problems (consumerism). Answer: Mismanagement Lack of Cash Flow Human Resource Management โ Types of Assets. Answer: Tangible & intangible assets โ Tangible Assets. Answer: assets that can be appraised by value, seen or touched โ What is Horizontal & Vertical Integration?. Answer: Tactics used by businesses to expand their operations to gain better control, market share economies of scale โ Horizontal integration.
Answer: when a company acquires or merges with another company within the same industry that sells a similar product and provides a similar service โ Vertical integration. Answer: When a company expands control over a specific industriy's entire supply chain โ How to determine the value of intangible assets?. Answer: by subtracting the tangible assets from the selling price or by following the industry standard โ How to determine the value of tangible assets?. Answer: Replacement Value Approach Earning Value Approach Market Value Approach โ Earning Value Approach. Answer: a business valuation approach that centers on estimating the amount of potential income that may be produced by the business next year โ Culture.
โ Management plan. Answer: proposed venture's organizational structure โ Operating plan. Answer: describes facilities/location of proposed venture โ Financial Plan. Answer: pro forma financial statements which reflect the firm's financial situation โ Marketing Research. Answer: the gathering, processing, reporting & interpreting of marketing information โ Examples of data sources. Answer: Census of business Census of housing Census of manufacturing Census of population Chamber of commerce
โ C Corporation. Answer: a corporation that elects to be taxed as a corporation taxed twice โ What is a business that has a physical location?. Answer: Brick & Mortar Business โ What is an alternative to a Brick & Mortar Business?. Answer: E-Commerce โ Boo Boo Research. Answer: customer loyalty program that reached out to lost customers to learn why they took their business elsewhere โ What are the 3 Classes of social needs?. Answer: social psychological spiritual โ How are all the classes of social needs connected to behavior?. Answer: through motivation
