As Organisations Are Open Systems, to Survive and Grow They

question 56

Multiple Choice

As organisations are open systems, to survive and grow they must relate to their environments and maintain effective relationships with:

• A)customers
• B)task environments
• C)general environments
• D)suppliers
• E)suitable environments

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, which can fluctuate due to market forces.

Functional Currency

The money type utilized in the financial statements of a business, which is from the main economic setting where the business functions.

Local Currency

The currency of the country in which the foreign operation is based.

Spot Exchange Rate

The exchange rate at a point of time for immediate delivery of the currency in an exchange.