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:

Leadership Traits

Innate characteristics and qualities that contribute to effective leadership, such as decisiveness, integrity, confidence, and empathy.

Definitive Set

A precise and unambiguous collection of elements or members with well-defined criteria of membership.

Trait Approach

A perspective in psychology that examines personality traits and how they influence human behavior and leadership.

Great Person Approach

A theory of leadership that assumes great leaders are born with innate qualities and not made.