Which of the Following Is NOT an Example of a Form

question 1

Multiple Choice

Which of the following is NOT an example of a form of political risk that might be avoided or reduced by foreign exchange risk management?

• A) expropriation of assets
• B) destruction of raw materials through natural disaster
• C) war
• D) unfavorable legal changes

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Definitions:

Operating Activities

Transactions and events that directly affect the financial position of a company, primarily related to its core business operations.

Comparative Balance

A financial statement that presents balances of accounts or financial metrics at different points in time for comparison.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from operating activities is directly listed.

Operating Activities

Business functions that are directly related to the production and delivery of goods and services, generating the primary revenue streams for a company.