Which of the Following Is NOT a Benefit of Derivatives

question 83

Multiple Choice

Which of the following is NOT a benefit of derivatives?

• A) risk sharing
• B) guaranteed minimum profit
• C) liquidity
• D) information services

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Definitions:

Incremental Analysis

The process of evaluating the financial consequences of making changes in business activities, by focusing on the costs and benefits that will change as a result.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use.

Manufacture Further

The process of additional or continued production to create finished goods from raw materials or components.

Inventory Cost

The total cost associated with acquiring, storing, and managing inventory, including purchase prices, delivery charges, and taxes.