Matthew Brown decides to become a part owner of a corporation.As a part owner,he expects to receive a profit as payment because he has assumed the risk of
A) serious inflation eroding the purchasing power of his investment.
B) being paid before the suppliers and employees are paid.
C) losing his home,car,and life savings.
D) losing the money he has invested in the corporation and not receiving profits.
E) the company giving all of the profits to local communities.

Question

Quizplus · Accepted Answer

As a part owner of a corporation, Matthew Brown assumes the risk of losing the money he has invested in the corporation and not receiving profits. Therefore, his expectation of receiving a profit is based on assuming this risk. Options A, B, C, and E are not directly related to the risk assumed by a part owner and the expectation of receiving profits.

Matthew Brown Decides to Become a Part Owner of a Corporation.As