Question

Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms that limit their liability while allowing them to take risks that may lead to greater profits.

A. True
B. False

Answer 1

The correct answer is A. True.

Step-by-step explanation:

Risk management models are a great tool to anticipate and prevent possible losses that could occur when investing a certain capital, implementing appropriate precautionary measures; Therefore, organizations and investors that have a culture of risk, create a competitive advantage over others, by assuming assessed risks, gain experience in risk management, anticipate adverse changes, protect or cover their investments in advance and obtain higher profits by taking greater risks.