Financial Derivatives Are Powerful Tools That Can Be Used by Management

question 55

Multiple Choice

Financial derivatives are powerful tools that can be used by management for purposes of:

• A) speculation.
• B) hedging.
• C) human resource management.
• D) A and B above

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Definitions:

Pollutants

Substances that contaminate the environment, causing harm or discomfort to living organisms and ecosystems.

Pollution Levels

The concentration of harmful substances in the environment, indicating the degree of pollution and potential risks to health and ecosystems.

Coal-Burning Facilities

Industrial plants where coal is used as the primary fuel to generate electricity or heat through combustion.

Cap-and-Trade

An environmental policy tool that sets a limit (cap) on emissions and allows entities to buy and sell allowances (trade) for emitting pollutants, aiming to reduce overall pollution in a cost-effective manner.