Final answer:
The use of professional judgment is essential in evaluating business risk because parties involved in transactions often operate with imperfect information and cannot be fully informed about every aspect of a transaction.
Step-by-step explanation:
Professional judgment is indeed a critical aspect when evaluating business risk. In the context of buyers and sellers operating with imperfect information, mechanisms are in place to mitigate risks, ensuring transactions can proceed with some level of confidence. This is because the parties involved are not always able to fully ascertain the quality of goods, the reliability of employees, or the creditworthiness of borrowers. Judgment is used to fill the gaps where certain information is unavailable or cannot be completely relied upon. As a result, the answer to the question is a) True.