Which of the Following Statements Is FALSE

question 49

Multiple Choice

Which of the following statements is FALSE?

• A)Horizontal integration entails the merger of a firm and its supplier or a firm and its customer.
• B)Like insurance,hedging involves contracts or transactions that provide the firm with cash flows that offset its losses from price changes.
• C)For many firms,changes in the market prices of the raw materials they use and the goods they produce may be the most important source of risk to their profitability.
• D)Because an increase in the price of the commodity raises the firm's costs and the supplier's revenues,these firms can offset their risks by merging.

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Definitions:

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries, often leading to restricted blood flow.

Atherosclerosis

A condition characterized by the hardening and narrowing of the arteries due to the buildup of plaque on the artery walls.

Classification

The systematic arrangement of entities in an ordered system that indicates relationships or hierarchies.