Entrepreneurship and Small Business Management

Section 2: Dealing with Risk

Section 22.2 Summary
Businesses can use four strategies to deal with risks: risk avoidance, risk reduction, risk transfer, and risk retention. Entrepreneurs need insurance and should put security and emergency measures in place. Property, causality, life, and workers' compensation insurance are the types of insurance entrepreneurs usually need. There are two types of insurance agents—the independent agent (who works for many insurance companies) and the direct insurance writer (who works for only one company).

Section 22.2 Reading Organizer
Fill out the reading organizer as you read the section.
Reading Organizer (29.0K)