Which of the Following Is a Related Benefit of Hedging

question 14

Multiple Choice

Which of the following is a related benefit of hedging external risks for a company?

• A) Management can determine international markets for their product.
• B) Management can forecast political events that may impact their sales.
• C) Management can focus on performance and compensation factors that are under their control.
• D) Management can determine the economic forces that will impact their earnings.

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Definitions:

Private Thoughts

Internal cognitive processes that are personal and not expressed to others, encompassing beliefs, reflections, and internal dialogues.

Subjective Feelings

Subjective feelings refer to personal perceptions of emotions and sensations that are not observable by others, including individual internal experiences of happiness, sadness, pain, and pleasure.

Group Needs

Refer to the requirements and desires shared by members of a group, crucial for the group’s cohesion and functionality.

Selection Effect

Refers to a bias introduced into research when individuals are not randomly assigned, leading to non-comparable groups.