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 owners and investors responsible for business risk, firms can more easily attract labor and other input suppliers, as these groups do not have to directly bear the financial risks associated with the business's performance. This separation of risk allows for a smoother operation and growth of the business by ensuring a steady supply of labor and materials without the additional burden of risk on these suppliers.

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