Question

What reward does a businessman get for bearing the risk?

• A. The reward of bearing risk is loss.
• B. The reward of bearing risk is profit.
• C. The reward if bearing risk is neutral.
• D. None of the above

Answer 1

The correct option is B

The reward of bearing risk is profit.

The term 'risk' refers to the possiblitiy of inadequate profits or even losses due to uncertainties or unexpected events.The reward of bearing the risk is profit.