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3-Define "Pure Risk"
and provide and
provide an example

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User Godeke
by
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1 Answer

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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.

Example:

→ A car accident.

If a person damages a car in a accident, there would obviously be no gain from it. The only outcome possible of this event would result in a loss, making this example a pure risk.

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User Cbox
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