Which of the Following Best Describes a Pure Risk

question 11

Multiple Choice

Which of the following best describes a pure risk?

• A) An uncontrollable risk that cannot be insured
• B) The outcome will either be a loss or no change
• C) The outcome will be either a loss or a gain
• D) A risk with three possible outcomes

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Definitions:

Education Credit Deduction

A tax benefit that reduces the amount of income tax owed by individuals paying for higher education expenses.

Qualified Expenses

Costs recognized by the IRS for specific tax benefits, such as education-related expenses eligible for tax credits.

Dependent

An individual, usually a child or spouse, who relies on another person for more than half of his or her financial support and qualifies for potential tax benefits on the caregiver's tax return.

Tuition

The fee paid for instruction or teaching, typically charged by educational institutions for course enrollment.