Multiple choice

Which of the following is not a type of pure risk?

  1. Personal Risks

  2. Property Risks

  3. Liability Risks

  4. External Risks

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

External risk is not a type of pure risk as there is chance of gain also along with the loss. External risks are the risk which result from forces outside the business. For instance changes in market conditions, political changes, technological conditions etc are external risks. If there are changes in market conditions and the price is increased of the product, due to increase in demand it would result in profits or gain or vice versa.

Keep practicing — related questions