Which of the Following Statements Regarding Long-Term Supply Contracts Is

question 37

Multiple Choice

Which of the following statements regarding long-term supply contracts is false?

• A) The market value of the contract at any point in time may not be easy to determine, making it difficult to track gains and losses.
• B) Long-term supply contracts are designed to eliminate credit risk.
• C) Long-term supply contracts insulate the firms from commodity price risk.
• D) Long-term supply contracts are bilateral contracts negotiated by a buyer and a seller.

---

Definitions:

Crowdsourcing

The method of acquiring knowledge, insights, or material by requesting input from a vast number of individuals, usually from those active on the internet.

Identify a Problem

The process of recognizing issues that might impede objectives or operations and defining them in a clear and precise manner.

Crowdsourcing

The act of obtaining information, ideas, or content by soliciting contributions from a large group of people, often from an online community.

Outside of the Organization

Refers to factors or influences that originate beyond the boundaries of an organization and can affect its operations and performance.