Ask Question
BusinessBusiness
2 September, 19:35

What is the difference between pure and speculative risk?

+4
Answers (1)
  1. 2 September, 22:20
    0
    Both involve the possibility of loss.

    Speculative risks involve the possibility of losses and gains, such as investing in the stock market.

    Pure risk only involves the possibility of loss, such as insuring a car. There is a possibility that nothing will happen (no gain/no loss), but there is also a possibility of loss from accidents etc. Their is no possibility of gain.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What is the difference between pure and speculative risk? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A company wants to set up their headquarters in Spain where the corporate tax rates are as follows: 11% of first $40,000 profits, 22% of next $26,000, 39% of next $29,000, and 42% of everything over $95,000.
Answers (1)
Blake eats two bags of generic potato chips each day, and does not purchase any name-brand chips. Blake's hourly wage increases from $ 8 to $ 15, and he decides to eat one name-brand bag and one generic-brand bag each day.
Answers (1)
Felice bought a duplex apartment at a cost of $150,000. her mortgage payments on the property are $940 per month, $121 of which can be deducted from her income taxes. her real estate taxes total $1,440 per year, and insurance costs $900 per year.
Answers (1)
David is the CEO of a large fast food chain. One part of his job is to meet with district managers to see how the restaurants in different sectors are doing.
Answers (1)
The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.
Answers (1)
New Questions in Business
Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very interested in one of the showcased paintings and approached the manager to buy the piece.
Answers (2)
To cut costs, a broker-dealer hires some college interns. The firm allows the interns to make calls to potential clients to market investment opportunities in stocks, bonds, and mutual funds. This action would be:
Answers (1)
Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units.
Answers (1)
A table that shows annual compound rates of growth between selected periods of time. a. quality of life c. growth triangle b. real GDP d. standard of living
Answers (1)
In a perpetual inventory system: a. Merchandise Inventory is debited every time inventory is purchased b. cost of Goods Sold is debited every time inventory is sold c. a physical inventory is taken at least annually d. All of the above.
Answers (1)
Home » Business » What is the difference between pure and speculative risk?
Sign Up Forgot Password?