Answer: Hedging
Explanation:
Hedging is the term which is used to determining the risk management system and also eliminating all the uncertainty element from the given situation.
The hedging is one of the type of investment process that helps in protecting from the finance related risk and by using this process the people are basically trying protect them from all the negative events.
According to the given question, Hedging is basically using to insure itself from all the foreign exchange risks in the firm . Therefore, Hedging is the correct answer.
Answer: Option C
Explanation: Environmental circumstances refers to the threats and opportunities that arise from political and economical unstability. These are highly fluctuating factors and can affect the business highly.
In the given case, the business of Ben and Chris slowed down due to the economic breakdown in the country. These factors are inescapable and affect all the businesses in the economy.
Thus, from the above we can conclude that the correct option is C.
Answer:
$23,950
Explanation:
Income $100,000
Expenses $75,000
Depreciation $22,000
income tax rate = 35%
Income $100,000
Expenses ($75,000)
Depreciation ($22,000)
EBT $3,000
Income Tax $3,000 * (35/100) = $1,050
Net Income $1,950
ATCF
=Earnings Before Tax + Depreciation
=$1,950 + $22,000 = $23,950
