USS Agro is a firm that markets agricultural products.The firm procures supplies from agricultural cooperatives across the world.The firm forms agreements with the cooperatives to provide supplies at a fixed price in the future to protect them against changing prices.This is an example of ________.

Question

Quizplus · Accepted Answer

A)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices. The given situation is an example of hedging.
B)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices. The given situation is an example of hedging.
C)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices. The given situation is an example of hedging.
D)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices. The given situation is an example of hedging.
E)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices. The given situation is an example of hedging.

USS Agro Is a Firm That Markets Agricultural Products