In Practice, Future Revenues Are Not Fully Predictable, So That

question 35

True/False

In practice, future revenues are not fully predictable, so that a 'rule of thumb' is needed in order to implement this approach; for example, the (say) exporter might borrow enough to hedge three years' revenue. He will also be subject to restrictions arising out of balance sheet ratios (e.g. the debt- equity ratio).

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Definitions:

Evolution

The procedure whereby diverse life forms are considered to have arisen and spread out from previous species over the course of earth's history.

Encephalization Quotient

A measure of brain size relative to body mass, used to estimate the intelligence or cognitive abilities of an animal.

Fruit Foraging

The activity of searching for and gathering wild fruits as a source of food.

Larger Brains

Refers to species or individuals that have relatively bigger brains, often associated with higher cognitive functions.