In a market system, which of the following is a major beneﬁt of making the ﬁrm's owners and investors exclusively shoulder the business risk?
A) Those who deeply dislike business risk will not have anything to do with the business.
B) This allows ﬁrms to more easily attract labor and other suppliers of inputs.
C) This reduces the business risk in the economy.
D) It makes it easier for the government to monitor and manage the business risk.

Question

Quizplus · Accepted Answer

By making the firm's owners and investors exclusively shoulder the business risk, it separates the risk from the labor and other suppliers of inputs, making it more attractive for them to engage with the firm without worrying about the financial risks involved. This separation helps in attracting a stable workforce and other necessary resources for the firm's operations.

In a Market System, Which of the Following Is a Major