Morton is discussing with his insurance agent the possibility that he might lose his building and equipment in the event of a fire or windstorm.Should that happen,Morton's company would not be able to earn revenues.These two people are discussing

Question

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The situation being discussed involves the possibility of a loss caused by a fire or windstorm, which is an example of pure risk. Pure risk is a situation where there is a chance of loss or no loss, but no chance of gain. Business risk (C) refers to the risk associated with the investments and decisions made by a company, such as the risk of failure or loss of profits. Market risk (D) refers to the risk associated with changes in the market conditions, such as interest rates or inflation, that may affect an investment's value.

Morton Is Discussing with His Insurance Agent the Possibility That