Forward Contracts Are Said to Possess ____ Risk

question 39

Multiple Choice

Forward contracts are said to possess ____ risk.

• A) business
• B) financial
• C) performance
• D) spot

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Definitions:

Licensing

Licensing is the process whereby a company allows another entity to use its intellectual property, brand, or product for a specified period in exchange for fees or royalties.

Royalty

A payment made to the owner of certain property rights for the use of those rights by others, common in publishing and patenting.

Strategic Alliance

A partnership between businesses, forged to leverage competitive advantages without sacrificing their individual autonomy.