The exposure a coffee chain faces from volatile bean prices is commodity price:
ARent
BRate
CRing
DRisk
Answer & Solution
Correct answer: D. Risk
1. The input price can move sharply against the buyer.
2. That movement threatens the firm's margins.
3. It is commodity price risk.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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