Long-Run Financial Risk

question 52

Multiple Choice

Long-run financial risk:

• A) can frequently be hedged on a permanent basis.
• B) is best hedged on a division by division basis within a conglomerate.
• C) is related more to near-term transactions than to advancements in technology.
• D) generally results from changes in the underlying economics of a business.
• E) can generally be hedged such that the financial viability of a firm is protected.

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Definitions:

Anxiety

A mental health condition characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Escape

The act of breaking free from confinement or an undesirable situation.

Obsessive-Compulsive Disorder

A disorder characterized by uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) that an individual feels the urge to repeat.

Hand-Washing Rituals

Compulsive behaviors involving repeated hand washing, often observed in individuals with obsessive-compulsive disorder (OCD).