All of the following are non-hedging strategies that can be used to manage business risk EXCEPT:
A)acquisition of additional information
B)forward contracts
C)diversification
D)insurance

Question

Quizplus · Accepted Answer

Forward contracts are a hedging strategy as they involve locking in a price or exchange rate to protect against potential losses. Acquisition of additional information, diversification, and insurance are all non-hedging strategies as they involve taking steps to minimize risk without directly hedging against it.

All of the Following Are Non-Hedging Strategies That Can Be