Ask Question
BusinessBusiness
6 October, 09:18

One essential trade-off involving business risk in a market system is reflected in which of the following statements? A. Access to the firm's profits and gains are open only to those who take on the business risk of the firm. B. Those who receive guaranteed payments from the firm are also guaranteed a share of the firm's profits. C. Those who make bad decisions regarding risk will suffer losses; those who decide wisely will gain profits. D. Those who bear the business risk of the firm are guaranteed to always gain profits.

+4
Answers (1)
  1. 6 October, 10:19
    0
    A) Access to the firm's profits and gains are open only to those who take on the business risk of the firm.

    Explanation:

    This is essentially true for both profits and losses, only the owners of a private business will benefit or lose when the business makes a profit or loses money. In other words, if I invest, I assume the risks of my investment and the profit or loss from that investment affects me.

    The same happens when you buy a car, only you can use it or decide who uses it. But if a stranger comes and takes your car it is a crime.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “One essential trade-off involving business risk in a market system is reflected in which of the following statements? A. Access to the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Students from a large intro stats class answer survey questions about themselves for a class dataset. They answer questions about their age, whether or not they get financial aid, their major, and the number of hours they work each week.
Answers (2)
Reasons why countries avoid specialization
Answers (1)
Larson, an unemployed carpenter, filed for voluntary bankruptcy on August 14, Year 3. Larson's liabilities are listed below.
Answers (2)
For an airline, which of the following would not be an operational budget? A cash receipts budget of flying consumers. A budget of planned air miles to be flown. A fuel budget. A materials budget for aircraft parts. A labor budget for flight crew.
Answers (2)
Prepare Journal Entries in a Purchases Journal Guardian Services Inc. had the following transactions during the month of April: Apr. 4. Purchased office supplies from Officemate Inc. on account, $415. Apr. 9.
Answers (1)
New Questions in Business
true or false Activity cost pools are factory overhead costs initially budgeted for activities, such as machine usage, inspections, moving, production setups, and engineering activities.
Answers (1)
Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information. Within each section of the statement, use the drop-down menus to enter the accounts.
Answers (1)
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine? a. 4 years. b. 6 years. c.
Answers (1)
A company purchased a delivery van for $15,500 with a salvage value of $2,300 on September 1, Year 1. It has an estimated useful life of 4 years.
Answers (1)
Money has a time value because
Answers (1)
Home » Business » One essential trade-off involving business risk in a market system is reflected in which of the following statements? A. Access to the firm's profits and gains are open only to those who take on the business risk of the firm. B.
Sign Up Forgot Password?