Explain the Difference Between Disconfirmation and Confirmation and Provide Five

question 24

Essay

Explain the difference between disconfirmation and confirmation and provide five confirming behaviours, with examples.

Comprehend the strategies used by companies to hedge financial risks, especially exchange rate risks.

Grasp the significance of dividend policies and their impact on shareholder satisfaction and company's financial health.

Recognize the relationship between risk and return in investment decisions.

Understand the characteristics and implications of various sources of corporate finance, including trade credit and debt financing.

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Definitions:

Long Term

Referring to an extended period, often implying a duration that affects future conditions or outcomes.

Structural Unemployment

A form of unemployment that arises from a mismatch between the skills that workers offer and the skills demanded by employers, often due to technological changes or market shifts.

Frictional Unemployment

Unemployment that occurs when people are between jobs or are entering the labor force for the first time.

Cyclical Unemployment

A type of unemployment that relates to the cyclical trends in the business cycle, increasing during recessions and decreasing in expansions.