Which of the Following Is Not a Reason for Firms

question 37

Multiple Choice

Which of the following is not a reason for firms to hedge?

• A)Firms can hedge less expensively than can their shareholders
• B)Shareholders cannot tolerate mark-to-market losses
• C)Hedging by corporations can have tax advantages
• D)Shareholders are not always aware of their firms' risks
• E)none of the above

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Definitions:

Open-Door Policies

Diplomatic policy aimed at ensuring equal trading opportunities in China for all foreign nations and preserving China's territorial integrity.

Anglo-Saxons

Germanic tribes who settled in England in the 5th and 6th centuries, whose culture and language significantly influenced the development of English society and linguistic structure.

White Man's Burden

A concept from a poem that suggested the obligation of European countries to govern and impart their culture to non-European peoples.

Nationals

Individuals who are legal citizens of a particular country and entitled to its protection and to exercise their rights and responsibilities as a citizen.