Which One of the Following Is True About the Use

question 25

Multiple Choice

Which one of the following is true about the use of derivatives?

• A)Derivatives usually appear explicitly in the financial statements.
• B)Academic surveys account for much of our knowledge of corporate derivatives use.
• C)Small firms are more likely to use derivatives than large firms.
• D)The most frequently used derivatives are commodity and equity futures.
• E)Derivatives are primarily used by firms that have easy access to capital markets.

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Definitions:

Internal Forces

Elements within an organization, such as employee attitudes or management decisions, that influence its operations.

Organizational Change

Involves modifications in the structures, strategies, policies, or culture of an organization to adapt to internal and external changes.

External Forces

Factors outside an organization that can impact its performance, such as economic conditions, competition, and regulatory changes.

Impact

The effect or influence of one thing on another; the outcome or result of a particular action or event.