Which of the Following Is Not True About Derivatives

question 141

Multiple Choice

Which of the following is not true about derivatives?

• A)large losses on derivative investments have been reported in the press.
• B)derivatives are so named because their value is derived from some underlying measure.
• C)derivatives are useful instruments for managing risk.
• D)accounting for derivatives is fully resolved and no additional rules or interpretations are likely.

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Definitions:

Customer Relationship Management (CRM)

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers.

Straight Rebuy

A purchasing situation in which a buyer reorders a product or service without modifications or shopping around.

Buying Center

A group within an organization responsible for evaluating and making purchasing decisions.

Straight Rebuy

A purchasing scenario in business-to-business transactions where an organization reorders a good or service without modification from the same supplier.