Which of the Following Is Probably NOT an Advantage of Foreign

question 16

Multiple Choice

Which of the following is probably NOT an advantage of foreign exchange risk management?

• A) the reduction of the variability of cash flows due to domestic business cycles
• B) increased availability of capital
• C) reduced cost of capital
• D) All of the above are potential advantages of foreign exchange risk management.

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Definitions:

Competing Business

A company that operates in the same industry and market segment as another, offering similar products or services.

Director

An individual appointed to serve on the board of an organization, responsible for overseeing and guiding the organization's policies, finances, and operations.

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a future specific date.

Fiduciary Duty

A duty required by law for one entity to prioritize the welfare of another while managing their finances, assets, or private data when given such responsibility.