Livingston Co

question 41

Multiple Choice

Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston's expected cash flows from domestic business are $100,000, and the Korean subsidiary is expected to generate 100 million Korean won at the end of the year. The expected value of the won is $.0012. What are the expected dollar cash flows of Livingston Co.?

• A) $100,000
• B) $200,000
• C) $160,000
• D) $60,000

Understand the concept and implications of groupthink in group dynamics.

Comprehend the effectiveness of communication strategies, including the use and impact of I-based statements.

Grasp the importance and method of paraphrasing in communication and conflict resolution.

Recognize the characteristics and impacts of different types of cultures on group interactions.

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Definitions:

Aztecs

Aztecs were a Mesoamerican culture that flourished in central Mexico in the post-classic period from the 1300s to the 1520s, before being conquered by the Spanish.

Expected Value

A statistical measure that calculates the average outcome when the future includes scenarios that may or may not happen.

Payoffs

The outcomes or returns from a particular action, investment, or decision, often used in game theory and economics.

Invest

To distribute funds or resources in anticipation of earning profits or income.