Which of the Following Is a Method Firms Can Use

question 19

Multiple Choice

Which of the following is a method firms can use to counteract price fluctuations and eliminate income risk?

• A) Manufacture all needed inputs internally
• B) Acquire upsteam firms in the vertical chain
• C) Enter into futures contracts to hedge the price of raw materials
• D) Eliminate competitors by under-cutting their price
• E) None of the above

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Definitions:

Howard Gardner

An American developmental psychologist known for his theory of multiple intelligences, which suggests that individuals have various distinct types of intelligences.

Psychologists

Professionals specializing in the study of the mind and behavior, dealing with how people think, feel, and act.

Script

In relationship transactions, a psychological script like a movie or theater script, with characters, dialogue, etc., that most people heard as children.

Payoff

The return or reward resulting from an action or investment, which can be in the form of profit, benefit, or satisfaction.