ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Risk
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Options
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Reward
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Benefit
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Detailed explanation-1: -Chance of loss is closely related to the concept of risk. Chance of loss is defined as the probability that an event will occur. Like risk, probability has both objective and subjective aspects.
Detailed explanation-2: -Risk is the chance of loss, and peril is the direct cause of the loss. If a house burns down, then fire is the peril. A hazard is anything that either causes or increases the likelihood of a loss.
Detailed explanation-3: -Probability – A risk is an event that “may” occur. The probability of it occurring can range anywhere from just above 0 percent to just below 100 percent. (Note: It can’t be exactly 100 percent, because then it would be a certainty, not a risk.
Detailed explanation-4: -This chance of loss is called as risk. The cause of the risk event is known as peril.
Detailed explanation-5: -Speculative risk is a category of risk that, when undertaken, results in an uncertain degree of gain or loss.