Match the term with its definition.
-The possibility of losses associated with the assets and earnings potential of a firm
A)all-risk approach
B)business risk
C)compensatory damages
D)Economic damages
E)health maintenance organization (HMO)
F)market risk
G)named-peril approach
H)peril
I)preferred provider organization (PPO)
J)pure risk

Question

Quizplus · Accepted Answer

Business risk refers to the possibility of losses associated with the assets and earnings potential of a firm.

Answer: D
 Economic damages refer to the monetary losses that result from a specific event or situation that caused harm to a person or entity.

Answer: F
 Market risk refers to the possibility of losses due to changes in market conditions, such as fluctuations in interest rates or currency values.

Answer: H
 Peril refers to a cause of loss or damage, such as fire, theft, or natural disaster.

Answer: J
 Pure risk refers to a situation where there is only the possibility of loss or no loss, with no chance of gain. It is the type of risk that insurance is designed to address.

Note: The remaining answer choices do not match with the given definitions.

Match the Term with Its Definition