Which of the Following Statements Is FALSE

question 49

Multiple Choice

Which of the following statements is FALSE?

• A)Horizontal integration entails the merger of a firm and its supplier or a firm and its customer.
• B)Like insurance,hedging involves contracts or transactions that provide the firm with cash flows that offset its losses from price changes.
• C)For many firms,changes in the market prices of the raw materials they use and the goods they produce may be the most important source of risk to their profitability.
• D)Because an increase in the price of the commodity raises the firm's costs and the supplier's revenues,these firms can offset their risks by merging.

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Definitions:

Consumer Bill of Rights

A declaration of the basic rights afforded to consumers, such as the right to safety, to be informed, to choose, and to be heard.

Moral Philosophers

Individuals who study principles or problems of right and wrong conduct, ethics, and moral philosophy.

Moral Idealism

A personal moral philosophy that considers certain actions to be universally right or wrong, independent of the outcomes they produce.

Personal Moral Philosophy

An individual's set of beliefs, values, and principles that guide their understanding of right and wrong and influence ethical decision-making.