BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a risk taker?
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Will evaluate risk and will strive to “pay” no more or less than the expected loss to avoid the risk.
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Defined as the uncertainty based on a person’s mental condition or state of mind, varies by individual.
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States that as the number of exposure units increases, the more closely the actual loss experience will approach the expected loss experience.
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Will “gamble” on a big payout and not take many precautions to avoid risk
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Explanation:
Detailed explanation-1: -Speculative Risk: Three possible outcomes exist in speculative risk: something good (gain), something bad (loss) or nothing (staying even). Gambling and investing in the stock market are two examples of speculative risks. Each offers a chance to make money, lose money or walk away even.
Detailed explanation-2: -Definitions of risk taker. someone who risks loss or injury in the hope of gain or excitement. synonyms: gambler. type of: adventurer, venturer.
Detailed explanation-3: -Gambling involves an element of risk, typically a high probability of loss against a smaller probability of large gain. More generally, risky endeavors are those involving variable outcomes.
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