Which of the Following Is a Major Reason for Firms

question 88

Multiple Choice

Which of the following is a major reason for firms to engage in currency swaps?

• A)They will only be required to repay the interest.
• B)They can obtain more favourable borrowing terms in a different currency.
• C)The debt will not show on their balance sheets.
• D)Borrowing in a foreign currency offers lucrative tax breaks.

---

Definitions:

Competitive Advantage

A unique attribute or ability that allows an organization to outperform its competitors.

Transferable Technology

Technologies that can be easily adapted and used in various industries or sectors.

Value Chain

The full range of activities that businesses go through to bring a product or service from conception to delivery to the consumer.

Competitive Advantages

Unique attributes or conditions that allow a company to outperform its competitors.