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

Question

Anderson Romero

Business

25 January, 04:56

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

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Answers (1)

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Franco Reese · Answer 1

The correct answer is option B.

Explanation:

In a market system, the suppliers and employees are generally shielded from risk. The stockholders and owners of the business are most exposed to risk.

The employees will get their salaries which are fixed and the suppliers will get payments for their supplies. The profits of business owners and stockholders may fluctuate so they are exposed to risk.

The employees and suppliers do not get to share profits but they are shielded from risks.