The most important reason to hedge business risk is to:
A)reduce the chance of a business takeover.
B)reduce employee theft.
C)reduce management inaccuracies.
D)reduce the chance of financial distress

Question

Quizplus · Accepted Answer

Hedging business risk is ultimately done to reduce the chance of financial distress. By hedging against potential losses or market fluctuations, a business can protect itself from financial harm and ensure its continued stability and success. While reducing the chance of a business takeover, employee theft, and management inaccuracies are all important goals, they are not the primary reason for hedging business risk.

The Most Important Reason to Hedge Business Risk Is To