Financial Derivatives Are Powerful Tools That Can Be Used by Management

question 55

Multiple Choice

Financial derivatives are powerful tools that can be used by management for purposes of:

• A) speculation.
• B) hedging.
• C) human resource management.
• D) A and B above

Recognize the importance of observing behavior in various situations to predict future behavior effectively.

Understand the role of geographical features and territorial expansions in North American history.

Recognize the diverse indigenous populations that inhabited North America before and during European colonization.

Explain the interaction between European colonizers and Native American populations.

---

Definitions:

Equity Multiplier

A financial leverage ratio that measures the proportion of a company's assets that are financed by stockholders' equity.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, reflecting the earning potential from dividends for investors.

Receivable Turnover

A financial metric that measures the efficiency of a company in extending credit and collecting debts, calculated as sales divided by the average accounts receivable.

Inventory Turnover

An indicator of the number of times a firm's inventory turnover occurs during a certain period, demonstrating the effectiveness of its inventory control practices.