Which of the Following Is an Unlikely Reason for Firms

question 28

Multiple Choice

Which of the following is an unlikely reason for firms to participate in the swap market?

• A) To replace cash flows scheduled in an undesired currency with cash flows in a desired currency.
• B) Firms may raise capital in one currency but desire to repay it in another currency.
• C) Firms desire to swap fixed and variable payment or receipt of funds.
• D) All of the above are likely reasons for a firm to enter the swap market.

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Definitions:

Gainsharing

A performance-based compensation strategy that rewards employees for contributing to the company's success through efficiencies and improvements.

Group Incentive Plan

A compensation system designed to reward a group of employees based on the collective achievements or performance of the group.

Retention Bonus

A financial incentive offered to an employee to encourage them to stay with the company for a specified period.

Retention Bonuses

Financial incentives offered to employees to encourage them to stay with the company for a specified period.