Arturo 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

Pure risk is the threat of loss with no chance for profit. If a flood occurs, the company will incur a loss; but if a flood does not occur, the company gains nothing.

Arturo Is Worried About the Risk of Potential Flooding to His