Boxes-and-Stuff, a box-packing and mailing company in a small town along the Gulf Coast, los a key employee last month when its accounting manager was fired for embezzling company money. Now, the owners of Boxes-and-Stuff, Jerome and Natalia, need to find another accounting manager-fast. But as they hurry to fill the position, they don't want to select a dishonest or incompetent employee. They need to be cautious. Fortunately, the police chief found the embezzled funds in a bank account set up by the former employee, and authorized the return of the money. This means that Boxes-and-Stuff will not lose the embezzled amount, after all. However, Jerome and Natalia are already thinking of ways to protect their company from other risks. They want to be prepared for risky situations in the future. Questions: 1. Which risks do you think Boxes-and-Stuff might face? 2. Are these risks pure (insurable) or speculative (not insurable)? 3. How do you think the company should handle the risks you've identified?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Boxes-and-Stuff, a box-packing and mailing company in a small town along the Gulf Coast, lost
a key employee last month when its accounting manager was fired for embezzling company
money. Now, the owners of Boxes-and-Stuff, Jerome and Natalia, need to find another
accounting manager-fast. But as they hurry to fill the position, they don't want to select a
dishonest or
incompetent employee. They need to be cautious. Fortunately, the police chief found the
embezzled funds in a bank account set up by the former employee, and authorized the return
of the money. This means that Boxes-and-Stuff will not lose the embezzled amount, after all.
However, Jerome and Natalia are already thinking of ways to protect their company from other
risks. They want to be prepared for risky situations in the future.
Questions:
1. Which risks do you think Boxes-and-Stuff might face?
2. Are these risks pure (insurable) or speculative (not insurable)?
3. How do you think the company should handle the risks you've identified?
Transcribed Image Text:Boxes-and-Stuff, a box-packing and mailing company in a small town along the Gulf Coast, lost a key employee last month when its accounting manager was fired for embezzling company money. Now, the owners of Boxes-and-Stuff, Jerome and Natalia, need to find another accounting manager-fast. But as they hurry to fill the position, they don't want to select a dishonest or incompetent employee. They need to be cautious. Fortunately, the police chief found the embezzled funds in a bank account set up by the former employee, and authorized the return of the money. This means that Boxes-and-Stuff will not lose the embezzled amount, after all. However, Jerome and Natalia are already thinking of ways to protect their company from other risks. They want to be prepared for risky situations in the future. Questions: 1. Which risks do you think Boxes-and-Stuff might face? 2. Are these risks pure (insurable) or speculative (not insurable)? 3. How do you think the company should handle the risks you've identified?
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