Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) Horizontal integration entails the merger of a firm and its supplier or a firm and its customer.
• B) Like insurance, hedging involves contracts or transactions that provide the firm with cash flows that offset its losses from price changes.
• C) For many firms, changes in the market prices of the raw materials they use and the goods they produce may be the most important source of risk to their profitability.
• D) Because an increase in the price of the commodity raises the firm's costs and the supplier's revenues, these firms can offset their risks by merging.

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Definitions:

Dropping Out

the act of leaving school or another educational institution before completing the course of study.

Prevent

Prevent refers to taking measures to ensure something undesirable, such as an issue or condition, does not happen.

Programs

Planned series of activities or procedures designed to achieve specific goals or outcomes.

Thinking about Death

The contemplation of mortality and the implications of one's own demise or the death of others.