Your US-Based Company Is Doing Business Internationally,one Way to Mitigate Exchange

question 63

Multiple Choice

Your U.S.-based company is doing business internationally,one way to mitigate exchange rate risk is to

• A) require payment in US$.
• B) use a forward contract.
• C) use a futures contract.
• D) All of the above.

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Definitions:

Total Assets

The cumulative amount of all resources controlled by an entity from which future economic benefits are expected to flow to the entity.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted to cash in the short term.

Current Liabilities

Short-term financial obligations that are due typically within one year or within a normal operating cycle.

Non-Eligible Dividends

are dividends from a corporation that do not qualify for the enhanced dividend tax credit in the recipient's hands, often because the issuing corporation pays tax at a rate less than the standard corporate rate.