Which of the Following Is a Mitigation Strategy for Market

question 48

Multiple Choice

Which of the following is a mitigation strategy for market risk?

• A)using multiple suppliers and suppliers that have the flexibility to respond to demand changes
• B)using approaches such as hedging,forward contracts,quantity discounts,or postponing decisions to counter volatility in market prices
• C)identifying and selecting suppliers to minimize disruptions in production
• D)choosing the right sourcing strategy upfront using reliable market intelligence

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Definitions:

Professional Services

Specialized services provided by individuals with expertise or qualifications in particular fields, like law, accounting, or consultancy.

Manufacturing Business

A company engaged in the conversion of raw materials into finished products through the use of labor and machinery.

Debit Balance

A debit balance occurs when the total of debits in an account exceeds the total of credits, commonly seen in asset and expense accounts.

Credit Balance

A situation in an account where the total credits exceed the total debits, indicating a positive balance.