Please answer each question in detail and explain, to better help me understand.

1. List six reasons why risk management might increase the value of a firm.

2. Discuss some of the techniques available to reduce risk exposures.

3. Explain how the futures markets can be used to reduce interest rate risk and input price risk.

How can swaps be used to reduce the risks associated with debt contracts?

4. Why do liquidations usually result in losses for the creditors or the owners or both? Would partial liquidation or liquidation over a period limit their losses? Explain.

5. Why do creditors usually accept a plan for financial rehabilitation rather than demand liquidation of the business?