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:

Sales Support Personnel

Staff members who provide assistance and resources to the sales team, aiming to make the selling process more efficient and effective.

Promotional Activities

Actions taken by a company to increase awareness and sales of its products or services, often involving advertising, sales promotions, and public relations.

New Products

Items or services introduced into the market for the first time, catering to identified consumer needs or market gaps.

Order Getter

Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.