A Business Plans to Acquire a Forward Contract to Hedge

question 32

Multiple Choice

A business plans to acquire a forward contract to hedge a monetary liability. Which of the following statements about the forward contract is true?

• A)If the contract is acquired at a premium, a loss results, and if the contract is acquired at a discount, a gain results.
• B)If the contract is acquired at a premium, a gain results, and if the contract is acquired at a discount, a loss results.
• C)Since the contract is to hedge a monetary liability, a loss results, regardless of whether the contract is acquired at a premium or a discount.
• D)Since the contract is to hedge a monetary liability, a gain results, regardless of whether the contract is acquired at a premium or a discount.

Comprehend the functions of different cranial nerves and their branches concerning facial sensation, motor control, and special senses.

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Definitions:

Mismanaged

Mismanaged refers to poor or inefficient management, where resources, tasks, or operations are not handled appropriately, leading to suboptimal outcomes.

Effectiveness

The degree to which something is successful in producing a desired or intended result, often measured against specific goals or standards.

Relevant Cost

A relevant cost is a cost that will be affected by a decision in the future and is important in business decision-making processes.