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:

Corporation Treasury

The division within a corporation responsible for its financial operations, including cash management, investments, and risk management.

Shareholder Minutes

Official records of the discussions and decisions made during shareholders' meetings of a corporation.

Model Business Corporation Act

A standardized legal framework intended to assist states in the United States in drafting laws that regulate the incorporation and operation of corporations.

Inspection Right

The legal ability to examine and review documents, records, or properties, typically in a business context.