A Way to Hedge Risk Is to Use

question 32

Multiple Choice

A way to hedge risk is to use:

• A)derivatives.
• B)futures.
• C)options.
• D)All of the Answer s are correct.

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Definitions:

Cash Collection

The process of gathering all cash received from sales, services, and other sources.

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect from its debtors.

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to receive payment at a later date.

Invoice Price

The amount charged by the seller to the buyer, detailing the cost of the product or service sold.