Having Diverse Sources of Revenue Minimizes Risk and Maximizes Autonomy

question 50

True/False

Having diverse sources of revenue minimizes risk and maximizes autonomy for a nonprofit.

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Definitions:

Farmer

An individual engaged in agriculture, raising living organisms for food or raw materials.

Hedger

An investor or trader who enters into contracts to protect against future price fluctuations of an asset.

Call Option

A Call Option is a financial contract that gives the holder the right, but not the obligation, to buy a specific amount of an asset at a predetermined price within a specified period.

Put Option

A financial deal that provides the holder the privilege, yet not the compulsion, to offload a specified quantity of a basic asset at a fixed rate within an established timeframe.