Which of the following statements regarding insurance and hedging is (are) true?
I. Insurance involves the transfer of an insurable risk while hedging handles risk that is typically uninsurable.
II. Insurance transactions can reduce objective risk, while hedging typically involves only risk transfer and not risk reduction.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: C
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APB Opinion No. 28 indicates that
A. All companies that issue an annual report should issue interim financial reports. B. The discrete view is the most appropriate approach to take in preparing interim financial reports. C. The three basic financial statements should be presented each time an interim period is reported upon. D. The same accounting principles used for the annual report should be employed for interim reports.
A company that stops using Styrofoam containers because they hurt the environment and starts using recycled paper provides an example of:
A) event marketing B) green marketing C) altruistic effort D) cause-related marketing