Which of the following best describes a pure risk?
A)an uncontrollable risk that cannot be insured
B)the outcome will either be a loss or no change
C)the outcome will be either a loss or a gain
D)a risk with three possible outcomes

Question

Quizplus · Accepted Answer

A pure risk is a type of risk where the only outcome is either a loss or no change. This is in contrast to a speculative risk, where there is the possibility of a gain. Pure risks are insurable, whereas speculative risks are not. Therefore, option B is the correct choice.

Which of the Following Best Describes a Pure Risk