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

Question

Quizplus · Accepted Answer

Pure risk refers to situations that can only result in a loss or no change. This includes events such as theft or vandalism, which can result in a financial loss for Perry's business. Business risk refers to the potential loss or failure of a business, while market risk refers to fluctuations in the market that can affect the value of investments. Uninsurable risk refers to risks that are too costly or difficult to insure against, such as war or nuclear events.

Perry's Business Is Not in the Safest Neighborhood