Uncertainty
Business conditions where outcomes unpredictable; probabilities unknown.
Real World
When Elon Musk founded SpaceX, no one could assign a reliable probability to a private company successfully launching rockets — this was uncertainty, not quantifiable risk like a standard insurance calculation.
Exam Focus
Distinguish uncertainty (unknown probabilities) from risk (known probabilities) — using these terms interchangeably loses marks.
How well did you know this?