Question

Which of the following is an example of speculative business risk?

• A. A customer is injured while using the product and sues the company
• B. A supplier's shipment is lost in transit
• C. A special promotion fails to increase the sales
• D. A cashier gives unauthorized discounts to friends

Answer 1

The Correct Option is C

Speculative risks involve situations where outcomes may result in either gains or losses. In this case, a special promotion failing to increase sales is a speculative risk because it represents a potential loss tied to an uncertain return on investment. Other examples given are not speculative risks but rather operational or insurable risks.