Hedging Reduces Risks and Also Adds Profit to a Firm

question 44

True/False

Hedging reduces risks and also adds profit to a firm.

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Definitions:

Demand

Represents the quantity of a product or service desired by consumers at a certain price point and time.

Operational Risks

The potential for loss resulting from inadequate or failed internal processes, people, systems, or external events within an organization's operations.

Supply Chain

A system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.

Control

The power to influence or direct people's behavior or the course of events, often within a managerial or systems context.