Which one of the following can a firm do if it effectively manages its financial risks?
A)eliminate all the risks faced by the firm
B)totally eliminate all financial risks
C)reduce the price volatility it faces
D)guarantee the firm's financial success
E)avoid all long-term financial risks

Question

Quizplus · Accepted Answer

A firm cannot eliminate all financial risks, but it can effectively manage them by reducing the price volatility it faces. Managing financial risks can help the firm mitigate potential losses and ensure financial stability, but it cannot guarantee financial success or eliminate long-term financial risks.

Which One of the Following Can a Firm Do If