The answer is because the company assumes the risk if the business fails.
This option is incorrect. As an employee, you typically receive a salary or wages, and possibly bonuses or profit-sharing, but you do not keep all the profits made by the business. The profits are usually distributed among shareholders or reinvested in the company.
This option is incorrect. Being an employee is generally considered less risky than being an entrepreneur. Employees have a more stable income and are not directly responsible for the financial success or failure of the business.
This option is incorrect. While employees may have some decision-making power, especially in higher-level positions, the ultimate control and decision-making authority typically rest with the company's executives and board of directors. Entrepreneurs, on the other hand, have the freedom to make all the decisions that control their business.
This option is correct. One of the main reasons people choose to work for a company instead of being an entrepreneur is that the company assumes the financial risk if the business fails. Employees are generally protected from the direct financial consequences of business failure, whereas entrepreneurs bear the full brunt of the risk.
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