A market system tends to restrict business risk to owners and investors. This results in which of the following benefits?
A)It encourages more people to become entrepreneurs.
B)Firms have to pay more to attract inputs, as these inputs have to share the risk.
C)Firms focus attention on prudent risk management, as it is profitable to manage risk.
D)Income becomes more equally distributed.

Question

Quizplus · Accepted Answer

Firms focus attention on prudent risk management, as it is profitable to manage risk.

A Market System Tends to Restrict Business Risk to Owners