One essential trade-off involving business risk in a market system is reflected in which of the following statements? a. access to the firm's profits and gains are open only to those who take on the business risk of the firm. b. those who receive guaranteed payments from the firm are also guaranteed a share of the firm's profits. c. those who make bad decisions regarding risk will suffer losses; those who decide wisely will gain profits. d. those who bear the business risk of the firm are guaranteed to always gain profits.

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)