Which of the following is an example of pure risk

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.

What are the 3 types of pure risk?

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.

What is an example of pure risk in business?

The correct answer is b.\n\n It is an example of speculative risk. In pure risk, there is no chance of any gain. In a speculative risk, there is a chance of a potential loss or gain. Here, the savings plan can generate income through interest.

Is not an example of pure risk?

-Pure risk: 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. Physical hazard. A physical hazard is a physical condition that increases the possibility of a loss.