In a market system, the task of assessing and managing the business risk of a ﬁrm is taken on by the ﬁrm's
A) labor.
B) capital suppliers.
C) entrepreneurs.
D) customers.

Question

Quizplus · Accepted Answer

Entrepreneurs have the primary responsibility of assessing and managing the business risk of a firm in a market system. They are the ones who take the initiative to start and operate the business, and therefore, they are the ones who make decisions about investments, production, marketing, and other aspects of the firm's operations. Capital suppliers may assist in managing financial risk, but they are not directly responsible for the overall management of the firm's risk. Labor and customers also play important roles in the market system, but they do not have the same level of responsibility for managing business risk as entrepreneurs.

In a Market System, the Task of Assessing and Managing