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:

SNAP

stands for Supplemental Nutrition Assistance Program, a federal aid program in the United States that provides food-purchasing assistance for low- and no-income people.

Income

Funds received regularly as a result of working or making investments.

Objective Eligibility Criteria

The predefined and transparent standards used to determine an individual's or entity's qualification for a program or benefit.

Public Assistance

Government-provided support aimed at individuals or households with inadequate or no income.