A Futures Contract

question 66

Multiple Choice

A futures contract

• A) is not exchange traded, therefore does not have a ready market value.
• B) exposes the contracting party to credit risk.
• C) does not require a margin account to be established.
• D) is standardized as to amounts and dates.

Analyze the challenges of international trade, including tariffs, quotas, and protectionism.

Evaluate the ethical considerations and arguments for and against protectionism.

Understand the impact of inventory accounting methods on economic earnings.

Identify and calculate different financial ratios that indicate liquidity, profitability, and asset utilization.

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Definitions:

Internal Competency Analysis

An evaluation process within an organization to identify and assess the strengths and weaknesses of its workforce’s skills and capabilities.

Dynamic Capabilities

The organization's ability to systematically renew competences, adapt to changing environments, and innovate processes and products.

Value Statement

A declaration that outlines an organization's core beliefs and principles, intended to guide its behaviors and decision-making processes.

Forecasting

The process of making predictions about future outcomes based on historical data and analysis.