Which of the Following Is NOT a Proactive Policy for Managing

question 3

Multiple Choice

Which of the following is NOT a proactive policy for managing operating exposure?

• A) matching currency of cash flow
• B) back-to-back loans
• C) cross currency swap agreements
• D) All of the above are proactive management policies for operating exposure.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.

Financial Data

Information related to the financial performance of a business, including income, expenses, assets, liabilities, and equity, used for analysis and decision-making.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

Sales On Account

Transactions where goods or services are sold with the understanding that payment will be made at a later date, typically recorded as accounts receivable.