Why do some small firms choose not to hedge transactions even though there may be a benefit from hedging?
A) They do not have the in-house expertise to enter into the proper hedging transactions.
B) The cost of complying with accounting regulations related to hedging outweigh the benefits that might be gained from hedging.
C) Small firms generally do not have enough at stake financially to allow them to deal with firms engaged in hedging.
D) Creditors of small firms generally refuse to allow the firms to be involved in hedging transactions.
Correct Answer:
Verified
Q40: _ develops from governmental processes,while _ develops
Q41: Accounting for hedges acquired for speculative purposes
Q42: How can MNCs use payments received from
Q43: A hedge that attempts to protect the
Q44: How were derivative transactions originally recorded by
Q45: How does the concept of double taxation
Q47: How does the separate entity approach to
Q48: Why is the value of many derivatives
Q49: How can MNCs benefit from using foreign
Q50: What does transfer pricing mean in the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents