Managers Are Willing to Pay a Price to Hedge Because

question 78

Multiple Choice

Managers are willing to pay a price to hedge because:

• A) they receive increased profits in return.
• B) the returns on derivative instruments are not taxed.
• C) they value the reduction in uncertainty.
• D)it permits the managers to receive higher cash bonuses.

Understand different types of conflicts and their sources within organizations.

Recognize the impact of personal and interpersonal dynamics on conflict.

Identify strategies for conflict resolution and their appropriate contexts.

Distinguish between functional and dysfunctional conflicts and their effects on organizations.

---

Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, with price typically on the vertical axis and quantity on the horizontal axis.

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.

Demand

The desire of purchasers, consumers, clients, or agents for a particular commodity, service, or other resource, combined with their capacity to purchase it.