BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A situation in which some kind of loss is possible
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Risk
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Peril
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Liability
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None of the above
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Explanation:
Detailed explanation-1: -A RISK is a potential for a LOSS. The LOSS is the realization of that negative potential. A RISK is running across a busy street blindfolded. A LOSS is getting hit by a car while doing that.
Detailed explanation-2: -Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain.
Detailed explanation-3: -A speculative risk has the potential to result in a gain or a loss.
Detailed explanation-4: -Risk can be categorized as to what causes the risk, and to whom it affects. Pure risk is a risk in which there is only a possibility of loss or no loss-there is no possibility of gain. Pure risk can be categorized as personal, property, or legal risk.
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