Maintaining High Minimum Efficient Scale Allows a Firm to Hedge

question 95

True/False

Maintaining high minimum efficient scale allows a firm to hedge against currency risks.

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Definitions:

Investors

Investors are individuals or entities that allocate capital with the expectation of receiving financial returns, commonly through the buying of stocks, bonds, or other investment instruments.

Creditors

Individuals or institutions to whom money is owed by a debtor, typically arising from the provision of goods, services, or loans.

Asset

Resources owned by a company or individual that are expected to bring future economic benefits.

Liability

A financial obligation of a business that it is required to repay in the future.