A Firm Can Reduce the Risk of Upward Movement in Raw

question 41

Multiple Choice

A firm can reduce the risk of upward movement in raw material prices by:

• A) buying a call option.
• B) selling a put option.
• C) buying a put option.
• D) selling a futures contract.

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Definitions:

Planning Phase

the stage in a project or process where objectives are defined, and the methods to achieve them are formulated.

Marketing Program

A comprehensive plan that integrates all marketing efforts, such as advertising, promotions, and branding, to achieve specific business objectives.

SWOT Analysis

A framework for analyzing a company's internal competencies (strengths and weaknesses) and its external environment (opportunities and threats) to inform strategy.

Customer Value Proposition

A business or marketing statement that explains why a customer should buy a product or use a service, highlighting the unique value it provides.