Which of the Following Statements Correctly Completes This Sentence? 'For

question 33

Multiple Choice

Which of the following statements correctly completes this sentence? 'For a manufacturing firm, when goods are completed and ready for sale .....'

• A) the firm's total assets are increased.
• B) the firm's total assets are decreased.
• C) there is no change in the value of the firm's assets.
• D) the firm's work in process inventory is increased.

Explain the principles of financial risk management, including the goal and primary functions.

Describe the characteristics and uses of various types of options in financial markets.

Understand the concept and implementation of futures and forward contracts in commodity markets and interest rates.

Recognize the impact of exchange rate fluctuations on international financial management and the strategies to hedge against them.

---

Definitions:

Usury Law

Legal regulations that set maximum interest rates which can be charged on loans, aimed at protecting consumers from exorbitant rates.

Shortage

The amount by which the quantity demanded of a product exceeds the quantity supplied at a particular (below-equilibrium) price.

Marginal Land

Land that is of poor quality for agriculture and unlikely to produce a profitable yield without significant investment in improvements.

Rents

Payments made for the use of property or land, or in economic theory, the excess returns to a factor of production over its opportunity cost.