Pure Risk, as Stated in the Textbook, Is

question 20

Multiple Choice

Pure risk, as stated in the textbook, is

• A) a chance all entrepreneurs take.
• B) a probability that adverse conditions will result.
• C) a condition in which there is a possibility that an adverse deviation from a desired outcome will occur.
• D) the uncertainty associated with a situation where only loss or no loss can occur.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be legally enforceable, aiming to prevent fraud and misunderstandings.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of the parties.

Facsimile Signatures

Electronic or stamped signatures that serve the same legal purpose as original handwritten signatures.

Equitable Estoppel

A legal principle that prevents an individual from arguing against or denying the truth of a matter due to their previous actions, admissions, or representations.