In a market system,
A)firm owners and employees share business risk more or less equally.
B)a firm's employees and suppliers are largely shielded from risk, relative to business owners.
C)employees and suppliers face the greatest risks, because firms can shut down without notice and leave them unpaid.
D)a firm's owners are largely shielded from risk because they can walk away from the business at any time.

Question

Quizplus · Accepted Answer

In a market system, firm owners bear the majority of the business risk, as they invest capital and resources into the business. Employees and suppliers, while affected by business performance, typically have contracts or agreements that provide some level of protection, making them less exposed to immediate risks compared to the owners who are directly responsible for the firm's liabilities and debts.

In a Market System