SBA Regulatory Compliance & Risk Management 1

Question 1

What is the purpose of regulatory compliance?

Accepted Answer

Follow laws and standards

Answer

Regulatory compliance ensures that businesses operate legally and ethically by adhering to all relevant laws, regulations, and industry standards. This adherence protects the business from legal penalties, maintains its reputation, and demonstrates a commitment to responsible operations.

Question 2

Which federal agency enforces workplace safety regulations?

Accepted Answer

OSHA

Answer

The Occupational Safety and Health Administration (OSHA) is a federal agency specifically tasked with ensuring safe and healthful working conditions for employees. It sets and enforces standards, and provides training, outreach, education, and assistance to employers and workers.

Question 3

What does risk management involve?

Accepted Answer

Identifying and mitigating risks

Answer

Risk management is the systematic process of identifying potential threats and vulnerabilities that could negatively impact a business. Once identified, strategies are developed and implemented to reduce the likelihood or impact of these risks, safeguarding the business's assets and operations.

Question 4

Which document helps ensure employees understand workplace policies?

Accepted Answer

Employee handbook

Answer

An employee handbook is a crucial document that outlines a company's policies, procedures, and expectations for its employees. It serves as a comprehensive guide, ensuring consistency, clarity, and legal compliance regarding workplace rules, benefits, and conduct.

Question 5

Which insurance protects businesses from lawsuits?

Accepted Answer

Liability insurance

Answer

Liability insurance protects businesses from financial losses resulting from claims of negligence, injury, or property damage caused to third parties. It covers legal defense costs and settlement payments, safeguarding the business from potentially devastating lawsuits.

(SBA) Small Business Administration Certified Business Practice Test

(SBA) Small Business Administration Certified Business Practice Test

SBA Regulatory Compliance & Risk Management 1