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.

Answer 1

True. 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.