Which of the Following Operations Benefits from Appreciation of the Firm's

question 43

Multiple Choice

Which of the following operations benefits from appreciation of the firm's local currency?

• A) borrowing in a foreign currency and converting the funds to the local currency prior to the appreciation
• B) receiving earnings dividends from foreign subsidiaries
• C) purchasing supplies locally rather than overseas
• D) exporting to foreign countries

---

Definitions:

Free Rider Effect

A situation where some individuals benefit from resources or services without contributing to the cost or effort involved.

Free Rider

An individual or entity that benefits from resources, goods, or services without paying for the cost or effort involved.

Proportional Share

A portion or percentage of a whole which is allocated in relation to its size, quantity, or importance.

Team Dysfunction

Problems or barriers that prevent a team from working effectively together and achieving its goals.