A company due to pay a certain amount of a foreign currency in the future decides to hedge with futures contracts. Which of the following best describes the advantage of hedging?
A. It leads to a better exchange rate being paid
B. It leads to a more predictable exchange rate being paid
C. It caps the exchange rate that will be paid
D. It provides a floor for the exchange rate that will be paid
B
Hedging is designed to reduce risk not increase expected profit. Options can be used to create a cap or floor on the price. Futures attempt to lock in the price
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Techno Comp is a well-known national brand of computer and electronic products and accessories. Their tablet would be considered a(n)
A. premium brand. B. subbrand. C. umbrella brand. D. copycat brand. E. exclusive brand.
An operation whose exact nature cannot be observed is referred to as a(n) _________________________
Fill in the blank(s) with correct word
Toxemia Salsa Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The following information was taken from last year's income statement segmented by flavor (brackets indicate a negative amount): Wimpy Mild Medium HotAtomicContribution margin$( 2,000) $45,000 $35,000 $50,000 $162,000Segment margin$( 16,000) $( 5,000) $7,000 $10,000 $94,000Allocated common fixed expenses$10,000 $10,000 $10,000 $10,000 $10,000Segment margin less allocatedcommon fixed expenses$(26,000) $(15,000) $(3,000) $0 $84,000Toxemia expects similar operating results for the upcoming year. If Toxemia wants to maximize its profitability in the upcoming year, which flavor or flavors should Toxemia discontinue?
A. Wimpy, Mild, and Medium B. Wimpy C. no flavors should be discontinued D. Wimpy and Mild
According to a survey conducted by Puffer, McCarthy, and Naumov, which of the following beliefs is held by Russian managers?
A. The present trend toward a shorter workweek should be discouraged. B. Workers have no part to play in decision making. C. A person must stand alone to be superior. D. Group activities always distract workers.