[Solved] Using options to reduce risk is called: A)speculation. B)a naked position. C)hedging. D)a covered position. Equity Stake: An ownership interest in a company through the holding of its stock, indicating a financial share in the entity's assets and profits. Entrepreneurial Capitalism: An economic system where individuals are encouraged to start and grow their own businesses, often leading to innovation and economic growth. Sole Proprietorship: A form of business ownership where a single individual owns and runs the business, bearing full responsibility for its assets and liabilities. Legal Structure: The framework within which an organization operates, defined by the law, including entities like corporations, partnerships, and sole proprietorships.