QUESTION 1

A good example of a risk avoidance strategy would be

when Tiger Brand Limited, a manufacturer of fast-moving consumer goods …

a.   

chose

not to do business any longer with countries like Russia and Ukraine, where

there is political uncertainty and war.

b.   

Insures

all the trucks with the Miway insurance company.

c.    

Invest the surplus cash in multiple money market

financial instruments.

d.   

Agree to set a price to sell bread on a predetermined

date in the future, and at the time of delivery, irrespective of the bread’s

current price, Tiger Brand Limited executes the contract at a price agreed

upon.