The
Definition Of

Pure risk

Pure Risk involve only a chance of loss.There is only possibility of loss but no possibility of profit.

According to Brigham and Others,” Pure risks are that offer only the prospect of a loss. Examples include the risk that a plant will be destroyed by fire or that a product liability suit will result in a large Judgment against the firm.”

Share it:

More from this Section

  • Tax treaties
    Tax treaties normally define whether taxes are to be imposed on income earned in one country by the nationals of another, and if so, how. Tax treaties are ...
  • Debt/equity ratio
    Debt/equity ratio is a comparative ratio of debt and equity used to measure the gearing/ health of a business.
  • Sound Lending Loan Policy
    Sound lending policy means a lending portfolio statement that gives importance in two issues: (1) lending activities meet the regulatory standard ...
  • Commercial risk
    Commercial risk— in banking, the likelihood that a foreign debtor will be unable to repay its debts because of business (as distinct from political) events.
  • Marketable securities
    Securities which are easy to sell on short notice in any time is called Marketable Securities.
  • Compensatory financing facility (CFF)
    One of the key duties of the IMF is its Compensatory financing facility(CFF), which attempts to reduce the impact of export instability on country economies.
  • Acceptance
    The term Acceptance means an undertaking by the drawee (who then becomes the “acceptor”), of a Bill of Exchange to pay to the person presenting the bill.