One reason that firms exist is that most investors are risk averse,so they are not willing to make the kinds of risky investments that firms typically undertake.

Name: One reason that firms exist is that most investors are risk averse,so they are not willing to make the kinds of risky investments that firms typically undertake.
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Firms exist primarily to organize production efficiently, reduce transaction costs, and manage resources, not solely because investors are risk-averse.

One Reason That Firms Exist Is That Most Investors Are