Which of the Following Is the Purpose of a Forward

question 44

Multiple Choice

Which of the following is the purpose of a forward contract?

• A) reduce corporate exposure to tax audits
• B) maximize intracorporate finance
• C) minimize the risk of exchange rate fluctuations
• D) earn profits from outsourcing activities

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Definitions:

Inventory

Items or products that are held by a business for the purpose of sale or production, including raw materials, work in progress, and finished goods.

Material Handling

The coordination of material and product flow, safeguarding, storage, and oversight from production, through warehousing and distribution, to the point of use and final disposal.

Obsolescence

The process of a product or technology becoming outdated or no longer used, often due to advancements in the field.

Toyota Production System

An integrated socio-technical system developed by Toyota, aimed at efficiently organizing manufacturing and logistics to improve customer satisfaction and minimize waste.