Which of the Following Orders Is Most Useful to Short

question 44

Multiple Choice

Which of the following orders is most useful to short sellers who want to limit their potential losses?

• A) Limit order
• B) Discretionary order
• C) Limit-loss order
• D) Stop-buy order

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Definitions:

Variable Costs

Costs that fluctuate in direct proportion to changes in production volume or activity level.

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet production goals.

Budgeted Production

The total number of units a company plans to produce in a specific period, according to its budget.