Although Derivatives Can Be Used as Speculative Instruments, Businesses Most

question 55

Multiple Choice

Although derivatives can be used as speculative instruments, businesses most often use them to

• A) attract customers.
• B) appease stockholders.
• C) offset debt.
• D) hedge risks.
• E) enhance their balance sheets.

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Definitions:

Likelihood

The probability or chance that a particular event will occur, often used in statistics and probability theory.

Identical

Exactly the same in every way; often used in the context of identical twins who share the exact same genetic makeup.

Polygenic Inheritance

A mode of inheritance in which traits are controlled by multiple genes, contributing to the phenotype in a cumulative or additive manner.

Traits

Characteristics or qualities that are inherent to a person or entity, often used to describe personality attributes.