Hedging refers to forming contracts that allow a company to ________.
A) obtain funds for a short period without paying interest
B) buy supplies in the future at designated prices
C) finance long-term debt on a continuous basis
D) engage in buyer-seller relationships with many firms
E) issue letters of credit to buyers exterior to the home country

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.
B)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices.
C)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices.
D)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices.
E)Hedging refers to protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices.

Hedging Refers to Forming Contracts That Allow a Company to ________