An owner- operator firm is where:
A)the owner is the only worker on the premises.
B)the one who directs resources is the sole residual claimant.
C)the one who directs resources is hired by stockholders.
D)the owner can force workers to do what he wants.

Question

Quizplus · Accepted Answer

An owner-operator firm is a type of business structure where the owner is the one who directs resources and is the sole residual claimant. This means that the owner has full responsibility for the operations of the business and bears all the financial risks and rewards of its success or failure. It does not necessarily mean that the owner is the only worker on the premises, nor does it give them the power to force workers to do what they want. The owner-operator model is commonly found in small businesses and can be contrasted with larger corporations where ownership and management are separated, and decisions are made by a board of directors.

An Owner- Operator Firm Is Where