Which of the Following Statements Is FALSE

question 1

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)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.
• 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)Like insurance, hedging involves contracts or transactions that provide the firm with cash flows that offset its losses from price changes.

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Definitions:

Consumer Ratings

Evaluations or reviews given by consumers regarding the quality, performance, or satisfaction of a product or service.

Formulas

Mathematical expressions that provide a set of rules or operations for solving problems.

Wilcoxon Rank Sum Test

A non-parametric statistical test used to compare two independent samples to assess whether their population mean ranks differ.

Level Of Significance

A threshold in statistical hypothesis testing, determining the probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).