Which of the following best describes pure risk?

Pure risk is best characterized by situations that present the possibility of loss without the opportunity for financial gain. In this context, pure risk refers to scenarios where adverse outcomes are the only potential results—such as the risk of an accident, theft, or natural disaster. These risks typically don't have an upside; the only possible result is a loss, and thus they are insured against to mitigate financial impacts.

The other concepts do not align with the definition of pure risk. The mention of potential financial gains, whether guaranteed or not, implies a speculative nature, which is outside the scope of pure risk. Similarly, subjective loss refers to personal perceptions of loss that do not have a direct financial component, which also does not fit the definition as it suggests a lack of tangible risk elements. Therefore, the definition that pure risk entails no financial gain with the potential for loss is the most accurate description.