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

Updated On: Nov 25, 2025
  • A customer is injured while using the product and sues the company
  • A supplier's shipment is lost in transit
  • A special promotion fails to increase the sales
  • A cashier gives unauthorized discounts to friends
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The Correct Option is C

Solution and Explanation

Speculative risks present scenarios with potential gains or losses. For example, a special promotion failing to boost sales is a speculative risk, representing a possible loss linked to an unpredictable return on investment. The other examples given are not speculative risks, but rather operational or insurable risks.

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