Alberto is worried about the risk of potential flooding to his restaurant. He decides to buy insurance to cover this ________ risk.
A) speculative
B) pure
C) uninsurable
D) managed

Question

Quizplus · Accepted Answer

Alberto is buying insurance to cover the risk of potential flooding, which is a pure risk. Pure risks involve only the possibility of loss or no loss, unlike speculative risks which involve the possibility of gain or loss. Uninsurable risks cannot be covered by insurance, and managed risks are risks that have been actively reduced or avoided through risk management strategies.

Alberto Is Worried About the Risk of Potential Flooding to His