Which of the Following Best Describes Pure Risk

question 31

Multiple Choice

Which of the following best describes pure risk?

• A)Risk with a good chance of gain and a small chance of complete loss.
• B)Risk with no chance of loss and some chance of gain.
• C)Risk with some chance of loss or gain.
• D)Risk with some chance of loss and no chance of gain
• E)Risk with a good chance of gains and a good chance of complete loss.

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Definitions:

Automated Router

A device or software that uses pre-set guidelines to direct data traffic automatically in a network.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, used to allocate overhead costs to products based on a particular activity base, such as machine-hours or labor-hours.

Machine-Hours

The total number of hours that machinery is in operation, often used as a measure for allocating manufacturing overhead costs.

Machine-Hours

A measure of production time based on the number of hours machines are operating.