The Primary Difference Between Entering into a Gamble and Purchasing

question 84

Multiple Choice

The primary difference between entering into a gamble and purchasing insurance is that

• A)in a gamble the odds are known with certainty.
• B)with all types of insurance you are always financially better off,whereas,with gambles,you are always financially worse off.
• C)a gamble involves pure risk,whereas insurance involves speculative risk.
• D)gambling is in many circumstances illegal and insurance is legal.

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Definitions:

Oral Contract

An agreement between parties that is spoken and not written, yet is legally binding unless specifically required by law to be written.

Enforceable

Capable of being executed or imposed in accordance with legal or contractual requirements.

Debt

Money owed by one party, the debtor, to another party, the creditor; an obligation to pay or do something.

Enforceable

Legally binding; capable of being upheld or imposed in a court of law.