Which one of the following statements regarding a firm's short$-$run financial risk is accurate?

Multiple Choice

A financially sound firm can become financially distressed as the result of its short$-$run exposure to financial risk Each segment of a business entity should be responsible for hedging its own short$-$run financial risk. Thus far, hedging techniques have been unsuccessful in reducing short$-$run financial risk. Short$-$run financial risk results from permanent changes in prices due to new technology.