Which of the Following Potential Losses Is Not an Example

question 53

Multiple Choice

Which of the following potential losses is not an example of a pure risk?

• A) Loss of a home by fire
• B) Theft of a car
• C) Loss of $10,000 in the stock market
• D) Theft of your wallet containing $100

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Definitions:

Subsidiary Corporation

A corporation wholly owned by another corporation (the parent corporation).

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Consolidation

The process of combining assets, liabilities, and other financial items of two or more entities into one.

Corporations

Legal entities that are separate from their owners, offering limited liability to its shareholders, and created under corporate law.