Which One of the Following Would NOT Be a Suggested

question 22

Multiple Choice

Which one of the following would NOT be a suggested element for an effective exposure management strategy?

• A)determine the types of exposure to be monitored
• B)formulate corporate objectives
• C)ensure that the corporate objectives a consistent with maximizing shareholder value
• D)avoid the use of forward contracts where possible

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Definitions:

Excess Burden

The excess burden of a tax is the cost to society in economic welfare that exceeds the revenue raised by the government, often due to distorted market behaviors.

Perfectly Inelastic

A market condition where demand or supply does not change in response to price changes, represented by a vertical line on a graph.

Tax

A financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Tax Revenue

Money collected by governments through the imposition of taxes.