Perry's business is not in the safest neighborhood.He is concerned about robbery and vandalism,two types of:
A)business risk.
B)market risk.
C)pure risk.
D)uninsurable risk.

Question

Quizplus · Accepted Answer

Pure risk refers to the risk of loss or damage without any possibility of gain. In this case, Perry is concerned about robbery and vandalism, which are pure risks as they only involve potential losses to his business without any possibility of gain. Business risk (A) includes risks related to the operation, finance, and management of a business, and market risk (B) relates to the potential for losses due to changes in market conditions. Uninsurable risk (D) refers to risks that cannot be covered by insurance policies.

Perry's Business Is Not in the Safest Neighborhood