MANAGEMENT

Detailed explanation-1: -Pure risk is a category of risk that cannot be controlled and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved. Pure risk is generally prevalent in situations such as natural disasters, fires, or death.

Detailed explanation-2: -Pure risk, in contrast, is the potential for losses where there is no viable opportunity for any gain. Sports betting, investing in stocks, and buying junk bonds are some examples of activities that involve speculative risk.

Detailed explanation-3: -Whereas pure risk is beyond human control and can only result in a loss if it occurs, speculative risk is risk that is taken on voluntarily and can result in either a profit or loss. Speculative risks are thus considered controllable risks.

Detailed explanation-4: -Pure Risk-the risk involved in situations that present the opportunity for loss but no opportunity for gain. Pure risks are generally insurable, whereas speculative risks (which also present the opportunity for gain) generally are not.

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.