One Argument Why Exchange Rate Risk Is Irrelevant to Corporations

question 28

True/False

One argument why exchange rate risk is irrelevant to corporations is that shareholders can deal with this risk individually.

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Definitions:

Listed Property

Assets required to be reported for tax purposes because they have the potential for personal use, such as cars, computers, and real property.

Standard Mileage Rate

The IRS-set rate per mile that taxpayers can use to calculate deductions for business, charitable, medical, or moving purposes when using a vehicle.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life to account for the decline in value over time.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset over a specified period.