The Indian Subsidiary of a US-Based MNC Purchased Three Caterpillars

question 90

Multiple Choice

The Indian subsidiary of a US-based MNC purchased three Caterpillars for its mining work.At the end of the financial year, the financial statements of the subsidiaries need to be translated into the currency of the parent corporation.When the Caterpillars were purchased, the exchange rate was 50 INR= 1USD.The present exchange rate is 60 INR= 1USD.The financial statement of the Indian subsidiary is translated into the currency of the parent corporation at the exchange rate of 60 INR= 1USD.The above serves as an example of the _____ of foreign-currency translation.

• A)Wiener process
• B)current-rate method
• C)Monte Carlo method
• D)temporal method
• E)Markov process

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Definitions:

Group's Cohesion

The strength of the relationships linking the members of a group to one another and to the group itself.

Major Problem

A significant or complex issue that requires considerable effort or resources to solve.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Close-ended Groups

Groups that have a fixed membership and do not allow new members to join after the group has started.