Eve and Her Three College Friends Enjoy Perfumes

question 292

Multiple Choice

Eve and her three college friends enjoy perfumes.As a special gift to each of them last holiday season,Eve found a way to make scented candles with each friend's favorite perfume scent.The three friends loved her gift idea and encouraged Eve to create more and sell them on the Internet.Recently,she is filling orders from her website,and turning a profit.Eve is proof that:

• A)me too businesses work.
• B)when you successfully fill a market need,you can make money.
• C)the Internet is a way to distribute just about anything.
• D)the cost of supplies to make candles is relatively cheap.

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Definitions:

Net Monetary Assets

The difference between monetary assets and monetary liabilities, used to assess liquidity position.

Exchange Gain

The profit realized from the sale of securities or foreign exchange transactions when the exchange rate moves in a favorable direction.

Functional Currency

The primary currency used by a business or unit in its financial transactions, reflecting the economic environment in which it primarily operates.

Foreign Subsidiary

A company that is owned or controlled by another company (parent company) and is located in a different country.