REASONS FOR INSURANCE ,RISK ASSESSMENT AND INSURANCE TERMS .

What is insurance?

 Insurance is ,a legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals and societies to cope with some of the risks faced in everyday life.

For example, you have insurance for your house in case it burns down. If that happens, you get money from the insurance company to house your family and rebuild (or replace) your home. You can purchase insurance for a wide variety of perils - fire, theft, natural disasters (floods, earthquakes, etc.), property damage, personal injury claims, and so forth.

Contractual agreements

Contractual agreements are one of the principal mechanisms for ordering life in society. Whether a contract is written or oral, or even implicit, it carries with it all of the duties and obligations that society has endowed with the force of law.

This article of lays a comprehensive  foundation in the practical and intricate body of law that governs contracts. What is a contract? How can you make one binding?  How can you avoid being prematurely bound by one? What can you do to get out of a contract? What remedies are available if someone breaches your contract?  

BUSINESS IN A FREE MARKET ECONOMY

The economy of the United States, as well as that of most developed nations, operates according to the principles of the free market. This differs from the economies of Socialist or Communist countries, where governments play a strong role in deciding what goods and services will be produced, how they will be distributed, and how much they will cost (see Socialism; Communism).

Businesses in free-market economies benefit from certain fundamental rights or freedoms. All people in free-market societies have the right to own, use, buy, sell, or give away property, thus permitting them to own and operate their own businesses as private, profit-seeking enterprises.

BUSINESS OPERATIONS

    BUSINESS OPERATIONS

 A variety of operations keep businesses, especially large corporations, running efficiently and effectively. Common business operation divisions include;

1.                   Production.

2.                   Marketing.

3.                   Finance.

4.                   Human resource management.

                    Production

Production includes those activities involved in conceptualizing, designing, and creating products and services. In recent years there have been dramatic changes in the way goods are produced.

Today, computers help monitor, control, and even perform work. Flexible, high-tech machines can do in minutes what it used to take people hours to accomplish. 

FORMS OF BUSINESS OWNERSHIP

There are a number of different forms of business ownership. These include (1) sole proprietorships, (2) partnerships, (3) corporations, (4) joint ventures, and (5) syndicates.

                        Sole Proprietorship

 The most common form of ownership is a sole proprietorship—that is, a business owned by one individual.