When a Firm Hedges a Risk, It

question 56

Multiple Choice

When a firm hedges a risk, it

• A)eliminates the risk.
• B)transfers the risk to someone else.
• C)makes the government assume the risk.
• D)increases the risk.

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Definitions:

Purchasing Manager

This individual is responsible for sourcing goods and services for an organization, including negotiating prices and contracts with suppliers.

Purchasing Committee

A group of professionals within an organization responsible for making buying decisions.

Buying Center

A group of individuals within an organization responsible for making purchasing decisions and evaluating products or services.

Evaluators

Individuals or entities that assess or judge the quality, value, or performance of products, services, or processes.