MANAGEMENT

Detailed explanation-1: -Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain. Fires, floods and other natural disasters are categorized as pure risk, as are unforeseen incidents, such as acts of terrorism or untimely deaths.

Detailed explanation-2: -Pure risks can be divided into three different categories: personal, property, and liability. There are four ways to mitigate pure risk: reduction, avoidance, acceptance, and transference. The most common method of dealing with pure risk is to transfer it to an insurance company by purchasing an insurance policy.

Detailed explanation-3: -Speculative risk refers to price uncertainty and the potential for losses in investments. Assuming speculative risk is usually a choice and not the result of uncontrollable circumstances. Pure risk, in contrast, is the potential for losses where there is no viable opportunity for any gain.

Detailed explanation-4: -Income Risk, Expense Risk, Asset/Investment Risk, and Debit/Credit Risk are the four types of risk.

Detailed explanation-5: -Pure risk is most common in situations such as fires, natural disasters, or death. They are situations that cannot be predicted and are beyond control. It is also commonly known as absolute risk.