A Market System Tends to Restrict Business Risk to Owners

question 46

Multiple Choice

A market system tends to restrict business risk to owners and investors. This results in which of the following benefits?

• A)a more stable macroeconomy with fewer recessions
• B)Firms are better able to attract inputs, as these inputs do not have to share the risk.
• C)Government agencies are better prepared to help when businesses fail.
• D)consistently lower prices for consumers

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Definitions:

Goal

An intended outcome or target that an individual or organization aims to achieve.

Compounded Semi-annually

The process of adding interest to the principal sum of a loan or deposit twice a year, also accounting for the interest accumulated over the period.

Monthly Payment

Regular payment made every month, commonly in the context of repaying loans or paying bills.

Home Renovations

Improvements or alterations made to a residential property, often intended to increase its value, functionality, or aesthetic appeal.