A peril that involves pure risk is
A) a building fire that burns one of several company owned office buildings
B) the purchase of a stock with a high degree of price fluctuation
C) a competitor's attempt to take market share from a business
D) betting that the Dallas Cowboys will win the Super Bowl at the beginning of the football season.

Question

Quizplus · Accepted Answer

A building fire is an example of pure risk because it represents a situation where there are only possibilities of loss or no loss, with no potential for gain. Pure risks are typically insurable, and a building fire fits this category as it can cause damage or loss to property without any potential for profit.

A Peril That Involves Pure Risk Is