A Speculative Risk

question 2

Multiple Choice

A speculative risk

• A)is the chance that something may be lost.
• B)is the cause of a possible loss.
• C)increases the likelihood of loss through some peril.
• D)is the uncertainty of direct or indirect loss to property due to fire, windstorms, accidents, theft and other hazards.
• E)is a risk that carries a chance of either loss or gain and are legally defined as uninsurable.

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Definitions:

Product Composition

The combination of different components, materials, or elements that make up a product.

Prestige Pricing

A pricing strategy where prices are set higher than normal because the product is perceived to have a higher value and status.

Price Lining

A pricing strategy that involves offering products at several different price points to provide options for different customer segments.

Price Lining

A pricing strategy that sets a limited number of prices for a specific category of products, thereby simplifying the choices available to consumers.