Firms Regularly Use the Following to Reduce Risk

question 39

Multiple Choice

Firms regularly use the following to reduce risk:
I.currency options
II.interest-rate options
III.commodity options

• A)I only
• B)II only
• C)III only
• D)I, II, and III

---

Definitions:

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest are deducted from total revenue.

Cash Investment

Funds that are invested in assets that can be quickly turned into cash, or the act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Equipment Sale

The process of selling off business-owned equipment, either to upgrade to newer assets or to liquidate assets for cash.

Cash Dividend

A payment made by a company out of its earnings to its shareholders in cash.