If the European Subsidiary of a U

question 1

Multiple Choice

If the European subsidiary of a U.S. firm has net exposed assets of euro 500,000, and the euro increases in value from $1.30/euro to $1.35/euro the U.S. firm has a translation

• A) gain of $25,000.
• B) loss of $25,000.
• C) gain of $525,000.
• D) loss of euro 525,000.

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Definitions:

Centralized Decisions

Decision-making process where important decisions are made by a small group of people, typically higher management, at the center of the organization.

Top Executives

Individuals who hold the highest-level management positions in an organization, responsible for strategic decision-making and leadership.

Emotional Maturity

The ability to understand, manage, and effectively express one's emotions, as well as handle interpersonal relationships judiciously and empathetically.

Fantasizing Success

involves vividly imagining achieving success, which can serve as motivation or an emotional escape but may also distract from actionable planning.