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:

Inflation

The rate of increase in the general price level for goods and services, leading to a decline in buying power.

Inflation

The pace at which the average price for goods and services climbs, weakening the capacity to purchase.

Uncertainty

A situation where the outcomes or consequences of an action, decision, or event are unknown.

Incentive

A factor, often a reward or a penalty, that motivates individuals or organizations to perform certain actions or behave in a desired way.