If the British Subsidiary of a European Firm Has Net

question 25

Multiple Choice

If the British subsidiary of a European firm has net exposed assets of £250,000, and the pound drops in value from €1.35/£ to €1.30/£, the European firm has a translation:

• A) gain of €12,500.
• B) loss of €12,500.
• C) loss of £12,500.
• D) gain of £12,500.

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Definitions:

Strategic IS

Refers to Strategic Information Systems, which are systems that help organizations gain a competitive advantage through their use.

System Integration

The process of linking together different computing systems and software applications physically or functionally, to act as a coordinated whole.

Intranets

Private networks within an organization designed to facilitate communication, collaboration, and information sharing among employees.

Tactical Decisions

Short-term decisions made within the framework of strategic plans, focusing on day-to-day operations of an organization.