Which of the Following Is Not Generally Considered a Benefit

question 20

Multiple Choice

Which of the following is not generally considered a benefit of hedging?

• A) It reduces one or more aspects of business risk.
• B) It allows prices to be locked in advance.
• C) The costs of hedging are paid by the speculators.
• D) It can stabilize profits.

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Definitions:

Reaction

A process leading to the transformation of one set of chemical substances to another.

Acetophenone

An aromatic ketone with the simplest structure, used as a building block in organic synthesis and as a fragrance in the perfume industry.

Benzene

A ring-shaped hydrocarbon known for its stability and aromaticity, widely used as a precursor in the manufacture of various chemicals.

Synthesis

The process of combining simpler substances chemically to form more complex substances, often used in the context of producing new chemicals or materials.