What reflects the risk that shareholders take in a business?

The correct answer demonstrates that shareholders are inherently exposed to the risks associated with a business’s performance. When shareholders invest in a company, they are hoping for returns on their investment, often in the form of profits. Aiming for maximum profit indicates that shareholders are taking on the risks that come with fluctuating market conditions, competition, and operational challenges, with the understanding that high potential returns are typically accompanied by high risk.

In contrast, the other options relate more to operational efficiency or management decisions rather than directly addressing the risks faced by shareholders. Ensuring low operational costs might improve profits but does not signify how shareholders are exposed to risk. Similarly, limiting expense reports is an internal control measure and does not pertain to shareholder risk. Lastly, hiring a large management team may aim to improve oversight and operational support but does not influence the fundamental risk that shareholders face in relation to their investments.

By focusing on aiming for maximum profit, the correct option captures the essence of the risk-return relationship in investing, illustrating how shareholders accept risk in pursuit of greater financial returns.