A Foreign Subsidiary of ABC Company Is Expecting Its Local

question 50

Multiple Choice

A foreign subsidiary of ABC Company is expecting its local currency to fall in value relative to the U.S.dollar.As a result,ABC is trying to speed up,or ________ its payments to the parent.

• A)lead
• B)lag
• C)reinvoice
• D)net
• E)hedge

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Definitions:

Corporate Executives

individuals who hold senior management positions within a company, responsible for making strategic decisions and overseeing operations.

Division Revenues

The income generated from the operations of a specific division within a larger corporation or organization.

Managers

Individuals responsible for planning, organizing, leading, and controlling resources to achieve organizational goals.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.