Which of the Following Firms Is Not Exposed to Translation

question 45

Multiple Choice

Which of the following firms is not exposed to translation exposure?

• A) Firm X, with a fully owned subsidiary that periodically remits earnings generated in Great Britain to the U.S.-based parent.
• B) Firm Y, with a fully owned subsidiary that periodically generates foreign losses in Sweden. The parent covers at least some of these losses.
• C) Firm Z, with a fully owned subsidiary that generates substantial earnings in Germany. The subsidiary never remits earnings but reinvests them in Germany.
• D) All of these firms are exposed to translation exposure.

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Definitions:

Change Management

The process, tools, and techniques used to manage the people side of change to achieve the required business outcome; it involves managing the transition from a current state to a desired future state.

Vanilla Approach

A method or solution that is simple, basic, or unmodified; often used as a starting point before any customizations are made.

ERP Implementation

ERP Implementation involves the process of deploying enterprise resource planning software in an organization to manage and integrate the important parts of its business.

SaaS ERP

Software as a Service-based Enterprise Resource Planning systems that provide business management tools over the internet.