In the Face of Unpredictable Movements in Exchange Rates, Businesses

question 71

Multiple Choice

In the face of unpredictable movements in exchange rates, businesses should

• A) pursue strategies that will reduce their economic exposure.
• B) pursue strategies that will decrease their strategic flexibility.
• C) pursue strategies that will reduce their foreign market exposure.
• D) sell off investments in foreign subsidiaries and consolidate domestic facilities.

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Definitions:

Cross-Footing

A bookkeeping process that involves checking the mathematical accuracy of figures in financial statements by ensuring that sums of columns and rows respectively match.

Cash Receipts Journal

A specialized accounting journal used to record all receipts of cash.

Equality

In financial terms, refers to the state where two values, amounts, or figures are of the same value or balance each other out.

One-Column Purchases Journal

A simplified accounting ledger that records only the purchases of goods and services in a single column, typically for small businesses or specific types of transactions.