Which of the following is a related benefit of hedging external risks for a company?
A) Management can determine international markets for their product.
B) Management can forecast political events that may impact their sales.
C) Management can focus on performance and compensation factors that are under their control.
D) Management can determine the economic forces that will impact their earnings.

Question

Quizplus · Accepted Answer

By hedging external risks, a company can reduce the uncertainty of its future financial performance, allowing management to focus on areas that they have control over, such as internal operations, performance, and compensation factors. This can ultimately result in a more efficient use of resources and improved financial performance. The other options are not directly related to hedging external risks.

Which of the Following Is a Related Benefit of Hedging