Asked by katira Gonzalez on Apr 25, 2024

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In a market system,employees and suppliers:

A) are usually shielded from risk,but at the cost of not sharing in the profits of the firm.
B) are usually shielded from risk and share in the profits of the firm.
C) are generally subject to as much risk as firm owners but get to share in the profits.
D) bear as much risk as firm owners but don't get to share in the profits.

Market System

An economic framework in which choices about investment, production, and the distribution of goods and services are influenced by supply and demand dynamics, with their prices established through a system of free pricing.

Shielded From Risk

Describes a condition or strategy in which an individual or entity is protected or insulated against potential losses or adverse outcomes.

  • Determine the challenges associated with risk management in command and market economies.
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KE
Kiara Estelow7 days ago
Final Answer :
A
Explanation :
Employees and suppliers in a market system are typically shielded from the direct risks that firm owners face, such as the risk of the business failing. However, this protection comes at the cost of not sharing in the profits of the firm, as profits are usually distributed among the owners or shareholders.