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Sedbober [7]
3 years ago
15

Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms t

hat limit their liability while allowing them to take risks that may lead to greater profits.
Business
1 answer:
Marianna [84]3 years ago
4 0
True. <span>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. Organization forms refers to how a company organizes different organizations within the company. A great deal of focus and planning goes into deciding how an organization should structure themselves to be the most profitable. </span>
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answer is given below

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Explanation:

From the question, we are informed that Security A has a higher standard deviation of returns than security B. Based on the above scenario, it should be noted that Security A would have a higher risk premium than security B since it has higher standard deviation and also, thee likely range of returns for security A in any given year would be higher than the likely range of returns for security B.

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