A Small Company Can Deal with Changing Currency Rates by

question 68

Multiple Choice

A small company can deal with changing currency rates by

• A)stating contracts in US dollars as opposed to the international currency.
• B)locating all plants in countries with the most advantageous exchange position.
• C)limiting sales in each country so as to reduce exposure to any one currency.
• D)following the advice of the international sales manager.

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Definitions:

Commission

A service fee charged by a broker or agent for facilitating transactions, such as in stocks or real estate.

Monthly Interest Charges

The amount of interest that accrues on a loan or debt and is payable on a monthly basis.

Sarbanes-Oxley Act

A United States federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, aiming to protect investors from fraudulent financial reporting.

PCAOB

The Public Company Accounting Oversight Board, an organization established to oversee the audits of public companies to protect the interests of investors.