Ben is concerned that if he injures someone or damages someone's property he could be held legally responsible and required to pay damages.This type of risk is called a
A)speculative risk.
B)liability risk.
C)nondiversifiable risk.
D)property risk.

Question

Quizplus · Accepted Answer

The type of risk described in the scenario is liability risk, which arises from the possibility of being held legally responsible for damages caused to others. Speculative risk refers to the possibility of gain or loss, while property risk is related to the potential of damage or loss to one's own property. Nondiversifiable risk refers to risk that affects the entire market or a large segment of it, such as economic recession or natural disasters.

Ben Is Concerned That If He Injures Someone or Damages