The possibility of a flood is pure risk,while the possibility of a new product failure is a speculative risk.

Question

Quizplus · Accepted Answer

Pure risk refers to situations where there is only the possibility of loss or no loss, such as natural disasters like floods. On the other hand, speculative risk refers to situations where there is the possibility of both gain and loss, such as investing in a new product that could either be successful or fail. Therefore, the given statement is true.

The Possibility of a Flood Is Pure Risk,while the Possibility