Which one of the following statements is most likely to be correct? A) The use of forward contract increases the short-run exposure to exchange rate risk. B) An exposure to exchange rate risk can be the risk that a positive net present value (NPV) project could turn into a negative NPV project because of changes in the exchange rate between two countries. C) Investing U.S. dollars when a project is launched and using the investment proceeds to pay the invoice is the primary way of reducing exposure to exchange rate risk. D) A firm can record a profit on its income statement from a foreign subsidiary even when that subsidiary has no profit thanks to exchange rate risk. E) A U.S. importer typically eliminates exposure to exchange rate risk by exchanging funds on the spot market at the time an order is placed with a foreign supplier.

Answers

Answer 1

Answer:

D

Explanation:

Answer 2

The correct answer is option D.

A firm can record a profit on its income statement from a foreign subsidiary even when that subsidiary has no profit thanks to exchanging rate risk.

Foreign subsidiary

A foreign subsidiary is a company operating overseas that is part of a larger corporation with headquarters in another country, often known as a parent company or a holding company.

What is a foreign subsidiary strategy?

Setting up a foreign subsidiary establishes a legal entity in another country. Legal entities can market their products and services to the local population. They can also import and export goods.

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Related Questions

"Which asset allocation is BEST for a 35-year old single risk tolerant investor looking to achieve the highest returns?"

Answers

Answer:

95% stocks /5% Money Markets

Explanation:

It is advisable for an investor that is relatively risk tolerant should consider devoting more of their money into stocks based investment, especially for a young, single investor who is willing to achieve highest return such that such an investor will be more likely to stay invested during the short periods of bear market fluctuations

Investment should be made based on the asset allocation plan. For a person looking to make high returns in about 20 years, he does not need to be very concerned about the stock market short-term fluctuations, compared to a person  looking to put their ward through college in a few years time who should be more inclined to fixed income safer investments.

The United States economy is considered by the Institute for Management Development to be the most competitive economy because:________

a. of widespread entrepreneurship.
b. of selected restrictions on imports from Japan and Europe.
c. Americans are willing to work harder than anyone else is.
d. of a high saving rate.

Answers

Answer:

a. of widespread entrepreneurship.

Explanation:

According to the Institute for Management Development, a business education school that is situated in Lausanne, Switzerland. In its annual rankings on the performance of 63 economies across the globe. In 2018 rated the United States of America as the topmost economy in competitiveness. Based on various data gathered and surveyed, the education school cited "widespread entrepreneurship" as the major reason behind it.

A local electricity - generating company has a monopoly that is protected by an entry barrier that takes the form of:________. a. economies of scale. b. perfectly inelastic demand curve. c. control of a key raw material. d. network externalities.

Answers

Answer:

a. economies of scale.

Explanation:

Local electricity companies generally have natural monopolies resulting from both economies of scale and/or control of natural resources. Economies of scale refers to the average total costs decreasing as the total output generated by the company increases. For example, it is extremely expensive to generate electricity for 1 single home, but the average total cost for generating electricity for 1 million homes is very low. Generally utilities are monopolies because it is very expensive to set and start operating the company, but once it is operating its average costs per consumer are very low.

The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases. The Home Depot is engaged in:

Answers

Answer:

Answer is B

Explanation:

In simple words, relationship marketing refers to the marketing strategy under which an organisation interacts with their customers through open communication and tries to build customer loyalty by proving them information and services that are best suited to their needs.

Organisations using such strategies focus on building positive relationship with the customers to retain them for a long time period and build a strong customer base for continuing high revenues and high market share.

In the given case also the company is rewarding their active customers by special services, thus, they are doing relationship marketing.

If the seller's broker in a transaction earned a commission of $18,250, what was the final sales price of the property, assuming he/she earned a commission rate of 6%...?

Answers

Answer:

$304,167

Explanation:

The seller's broker earned a commission of $18,250 in a transaction

The commission rate is 6%

= 6/100

= 0.06

Let y represent the final sales price of the property

Therefore, the final sales price of the property can be calculated as follows

0.06y= $18,250

y= $18,250/0.06

y= 304,167

Hence the final sales price of the property is $304,167

When improvements reach the age that the income from the property does not pay a reasonable return on the land value, the property has reached the end of its:

Answers

Answer:

Economic life

Explanation:

The economic life or service life or useful life or depreciable life is the number of years over which the income from the asset is more than the maintenance and operation expenditures. It is the period after which the asset is inoperable or cannot be put to commercial profit use

Economic life can also be measured as the number of units exhausted or attained, used or produced, such as the economic life of a car can be listed as 160,934.4 kilometres in place of a listing as having an economic life of three years.

"A customer contributed $50,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $70,000. The customer is now age 60, and takes a lump-sum distribution of $25,000 to pay for expenses. Which statement is TRUE?"

Answers

Answer: $20,000 of the distribution is taxable and $5,000 is not taxable

Explanation:

The options to the question are:

A. The entire $25,000 distribution is not taxable

B. $5,000 of the distribution is taxable and $20,000 is not taxable

C. $20,000 of the distribution is taxable and $5,000 is not taxable

D. The entire $25,000 distribution is taxable.

From the question, we are told that a customer contributed $50,000 to a variable annuity contract and that the account value has grown over the years and the NAV is now $70,000.

We are further told that the customer is now age 60, and takes a lump-sum distribution of $25,000 to pay for expenses. This indicates that there will be tax deductible in the amount of :

= $70000 - $50000 = $20,000. It should also be noted that $5000 won't be taxed.

An owner advertised "beautiful acreage only $5,000 down, owner will personally finance down payment." Would this be in violation of the Truth in Lending Act?

Answers

Answer:

No, owners are not covered by the Truth in Lending Act.

Explanation:

Based on this scenario it can be said that No, owners are not covered by the Truth in Lending Act.  This regulation basically requires that all financing terms and conditions are disclosed if any such aspect like a low-interest rate, downpayment or other enticement is featured in the advertisement. Even though this is the case in this scenario, the Truth in Lending Act does not apply to individuals selling their own property and therefore does not apply in this situation.

Old Man Smith died owning a property with an estimated value of $500,000. He never married and died without leaving a will. Smith's sister was married and had two children. What will happen to the property upon the death of Mr. Smith?

Answers

Answer:

The property would be given to the next available direct relation of his who happens to be his sister. This is because, most property are shared among siblings. Since Smith's sister is one of his sibling, she is entitled to receive the property.

Explanation:

Because he did not created a will, the property of the deceased estate will be administered by court and decision of appropriation to the likely beneficiaries will be made therein.

Usually, when the estate owner dies without a will, the family or relatives will need to start the process of administration which will be done by a court of law.

In conclusion, since he did not created a will, the property of the deceased estate will be administered by court and decision of appropriation to the likely beneficiaries will be made therein.

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What amount should Dunbarn report as cash provided (used) by investing activities in its statement of cash flows for the year

Answers

Complete Question:

Dunbarn Co. had the following activities during the year:

Purchase of inventory$120,000

Purchase of equipment 80,000

Purchase of available-for-sale securities 60,000

Purchase of treasury stock 70,000

Issuance of common stock 150,000

What amount should Dunbarn report as cash provided (used) by investing activities in its statement of cash flows for the year?A. $(120,000)B. $(140,000)C. $(210,000)D. $150,000

Answer:

Dunbarn Co.

The amount Dunbarn Ltd should report as cash provided (used) by investing activities in its statement of cash flows for the year is:

B. $(140,000)

Explanation:

a) Investing outflows:

Purchase of equipment                            $80,000

Purchase of available-for-sale securities  60,000

Total spent on investing activities         $140,000

b) Investing activities are the financial activities that an entity engages in to increase its stock of owned resources.  They include cash inflows and outflows around the acquisition of long-term assets and securities.  These are investments made so that the firm can generate more resources for itself.  The purchase of inventory falls under operating activities, as inventory forms part of the main business of the entity.  The purchase of treasury stock and issuance of common stock are classified as financing activities and not investing activities.  This leaves the purchase of equipment and available-for-sale securities as the only investing activities during the year.

Like the CISSP, the SSCP certification is more applicable to the security__________ than to the security __________.
A) technician, manager
B) manager, engineer
C) manager, technician
D) technician, executive

Answers

Answer:

sut dykrb if  fik

Explanation:

ryuj   kyiimr k r 7  

Answer:

manger, technician

Explanation:

"Which of the following statements are TRUE? I New issues of Treasury Bills are generally priced at par II New issues of Treasury Bonds are generally priced at par, or at a slight discount to par III New issues of Agency Bonds are generally priced at par, or at a slight discount to par"

Answers

Answer:

The remaining part of the question is:

Which of the following statements are TRUE?

I New issues of Treasury Bills are generally priced at par

II New issues of Treasury Bonds are generally priced at par, or at a slight discount to par

III New issues of Agency Bonds are generally priced at par, or at a slight discount to par

A. I only

B. III only

C. II and III only

D. I, II, III

Correct Answer:

C. II and III only

Explanation:

It is a fact that virtually all new issues of T-Bills are always sold at a discount to par value. These are original issue discount obligations, with the accrued value of the discount being the interest income earned on these securities.

Treasury Bonds and Agency Bonds are issued at par or in most cases at a very slight discount to par, and make periodic interest payments.

The part of the variable overhead budget variance due to the difference between actual variable overhead cost and the standard cost allowed for the actual inputs used is called the:

Answers

Answer:

variable expenditure variance

Explanation:

The variable expenditure variance is the difference between actual variable overhead cost and the standard cost allowed for the actual inputs used.

An adverse variance results when actual overheads exceeds the standard cost for actual input used for example labor hours.

A favorable variance results when the standard cost for actual input used exceeds the actual overheads.

The budgetary unit of an organization that is led by a manager who has both the authority over and responsibility for the unit's performance is known as a

Answers

Answer:

Responsibility center

Explanation:

A responsibility center is a unit in an organization that is headed by a manager or an executive, in which he has a level of responsibility and authority over the performance of that unit. The manager is usually held responsible for the outcomes and activities carried out in the unit. In an organization, there are several responsibility centers that tend to different responsibilities.

A responsibility center is a functional entity of its own that is staffed. Examples of responsibility centers are cost centers, profit centers, revenue centers and so on.

Which root of insurgency discusses how foreign businesses can dominate critical portions?

Answers

Answer: Occupation or exploitation

Explanation:

Foreign business would find it differently difficult to break into the local market of a particular environment. One of the ways they can break into such market is by exploitation. They have to exploit the market by carrying out extraordinary deeds in what their products offer or how they intend selling their product to the local market they are approaching. They need to be creative with their plan and seek ways to capture the fancy of these market.

Caars Inc. issued a 120-day note in the amount of $360,000 on November 1, 2016 with an annual rate of 6%. What amount of interest has accrued as of December 31, 2016

Answers

Answer:

The amount of interest accrued as of December 31, 2016 is $10,980.

Explanation:

On December 31, two months interest is accrued and this is equivalent to 61 days (30 days for November and 31 days for December).

Calculation of Interest accrued is as follows ;

Interest accrued =  $360,000 × 6% × 61/120

                           =   $10,980

For some reason, the seller of a home at 123 Mulberry Lane decided not to close on a sale transaction on closing day. The seller called the title company and told them she would not close the transaction but would not say why. The buyer has a moving truck, already loaded with his things, sitting in front of the home, waiting for possession of the new property. Since the seller refuses to close, what can the buyer do?

Answers

Answer:

The buyer can sue for specific performance of the contract. In real estate, in order for the buyer to be able to sue for specific performance, he/she must have all the money (or mortgage) ready to finish the transaction. It is very difficult for someone to sue for damages for not wanting to complete the sale of a house because houses are unique in a way that similar houses in different neighborhoods or even streets might be worth a lot more or less.

When you sue for specific performance, the non-breaching party will request that the other party performs their side of the contract.

As a technical project​ manager, you have decided to propose implementing a prototyping methodology for a small​ web-based design project. What is the order of steps you will follow in this​ project? .

Answers

Complete/Correct Question:

As a technical project manager you have decided to propose implementing a prototyping methodology for a small web-based design project. What is the first step you will follow in this project?

A. Use the existing prototype.

B. Identify user requirements.

C. Conduct a feasibility study.

D, Identify different solutions.

E, Develop an initial prototype.

Answer:

B, identify user requirements

Explanation:

When prototyping a methodology, it is very important that the project manager identifies or asks for the requirements of the client to ensure that the design doesn't come off as meaningless.

Cheers.  

_____________ is a short-term debt security sold by a business firm or financial institution to another business or institution where the seller agrees to buy back the security at a specified price and date.

Answers

Answer:

A repurchase agreement.

Explanation:

A repurchase agreement is a short-term debt security sold by a business firm or financial institution to another business or institution where the seller agrees to buy back the security at a specified price and date.

Ollie and Molly Overton have just taken out a 30-year straight term loan on their new "starter home" in Bellflower. This means that:________.A. They will make payments of interest only, with the principal due on the loan due date in 30 years.B. They will make payments of principal only, with the accumulated interest due on the loan due date in 30 years.C. They will make payments of interest and principal on an equal basis until the final payment, which will be larger than the rest, is made at the end of the loan term.D. They will make regular payments of principal and interest, and the entire loan will be paid off by the end of the term.

Answers

Answer:

A. They will make payments of interest only, with the principal due on the loan due date in 30 years.

Explanation:

In this scenario, Ollie and Molly Overton have just taken out a 30-year straight term loan on their new "starter home" in Bellflower.

A straight term loan is also known as a straight term mortgage or an interest only loan. It can be defined as a type of loan in which the borrower pays only interest during the term of the loan, while the entire principal amount is to be paid for with the final interest payment at the maturity date (loan due date).

This ultimately implies that, Ollie and Molly Overton will make payments of interest only, with the principal due on the loan due date in 30 years.

Alicia has a fairly weak case to present to her supervisor. In order to be more persuasive, she should

Answers

Answer:

put him in a good mood

Explanation:

As a normal human we know that when the chances  of a event are low to be in our favour, we shall choose the best method, and best time in order to increase the feasibility or possibility of letting that event occur.

Now, in the given case. Alicia is an employee and when she knows that the chances of  getting her demand successful are low, and her case stands weak, that is  chances of getting positive results are low.

Then, she should probably find the best mood of her supervisor so that the supervisor at-least do not completely neglect her views, and rather consider to affirm them.

If she doesn't find a good mood, she should probably try to put him in good  mood.

Which of the following business segments would not be considered a cost center? Manufacturing facilities Accounting department Retail outlet Personnel department

Answers

Answer:

The answer is Retail outlet

Explanation:

Cost center is a function is an organization that does not directly add to the profit of the organization but rather add to the cost of the organization. This is unlike profit center that directly add to the profit of the company.

Examples of cost center are legal department, accounting department.

Retail outlet is not a cost center because it involves the purchase and sales of inventories. So it directly adds to the profit of an organization.

A registered representative has written discretionary authorization from a customer. Specific customer approval is needed for the registered representative to effect what transactions in the customer's account?

Answers

Answer:

Purchase a municipal bond where the broker-dealer has a control relationship with the issuer

Explanation:

Specific customer approval is needed when there is a control relationship between a brokerage firm and the issuer before a security can be purchased in discretionary accounts

Carlita began 2014 with a taxes payable account balance of $3,000. On December 31, 2014, its taxes payable account balance is $7,000. How much did Carlita pay to the tax authorities during the year?

Answers

Answer:

$2,000

Explanation:

The computation of the amount pay to the tax authorities during the year is shown below;

Let us assume the accrued payment be $6,000

Let us assume the amount pay to the tax authorities be X

Beginning Taxes payable account balance + Accrued payment - X = Ending taxes payable account balance

$3,000 + $6,000 - X = $7,000

$9,000 - X = $7,000

So, the X is

= $9,000 - $7,000

= $2,000

hence, the amount pay to the tax authorities is $2,000

In terms of stating mortgage rate interest, the standardized rate required by the Truth in Lending Act to facilitate comparison loan shopping is called the

Answers

Answer:

Annual Percentage Rate (APR).

Explanation:

In terms of stating mortgage rate interest, the standardized rate required by the Truth in Lending Act to facilitate comparison loan shopping is called the annual percentage rate (APR).

The annual percentage rate (APR) in financial accounting is usually expressed in terms of percentage of the total yearly cost of funds provided to a borrower of a loan or income earned on an asset.

Hence, the annual rate of interest charged or deducted from a borrower and being paid to an investor is generally referred to as the annual percentage rate (APR).

An industry is considered to be global to the extent that its industry position in one country is dependent upon the industry position in other countries.a) trueb) false

Answers

Answer:

False.

Explanation:

False, Because a global company is the one that operates in different countries. It does not have to depend on the position of industry in other countries. If a company is operating in different countries then it is a global company. Moreover, in the case of a global company, the company sells its product in that country without changing its quality. For example, a global company selling soda in different countries. In this case, the company will not compensate for its product according to the culture of that country rather it will impose its business model.

If the natural rate of unemployment equals 5 percent and the actual rate of unemployment equals 6 percent, then cyclical unemployment equals:

Answers

Answer:

1%

Explanation:

The computation of cyclical unemployment is shown below:

Cyclical unemployment is

= Actual rate of unemployment - the natural rate of unemployment

= 6% - 5%

= 1%

We simply deduct  the natural rate of unemployment from the Actual rate of unemployment so that the cyclical unemployment could come and hence the difference is called as a cyclical unemployment, the same is to be considered

Investment risk may broadly be categorized as either unsystematic or systematic risk; both types of risk together constitute total, or absolute, risk. Total risk is measured by

Answers

Answer:

standard deviation

Explanation:

Systemic risk is risk inherent in a market and cannot be diversified.

systemic risk is measured by beta

unsystemic risk is risk specific to a business and it can be eliminated by diversifying portfolio

the sum of systemic and unsystemic risk gives total risk and it is measured by standard deviation

In our accounting department, one of the actions taken by a clerk has been to identify the most frequently used forms and to put them in an area where they can be easily accessed. The other less frequently used forms have been tagged and put in their own separate area. This action likely occurred from the use of which lean tool?

Answers

Answer:

a 5S program

Explanation:

This action likely occurred from the use of a 5S program. This is a program that focuses on the 5 S' which are Sort, Set in Order, Shine, Standardize, Sustain. These are used in order to analyze everything in an area in order to decide what is or isn't necessary, put things in order, cleaning, and setting up procedures for performing these tasks on a regular basis. Which is what the clerk has done by identifying these most and least frequent forms and organizing them accordingly for use on a regular basis.

Derek's new office is undergoing a minor renovation and he cannot conduct business in the location for approximately six months. He decided to lease a temporary office in Samantha's building from June 1 to December 30. Which type of lease has Derek signed?

Answers

Answer:

im not smart but i think its a short term lease

Explanation:

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