A Supply Chain

question 75

Multiple Choice

A supply chain

• A)focuses on making services available,whereas a channel of distribution focuses on making goods available.
• B)may involve many firms,but only one manufacturer.
• C)includes all the activities involved in procuring materials,transforming them into products,and distributing them to customers.
• D)is easier to coordinate than a channel of distribution.
• E)None of these answers is correct.

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Definitions:

Relevant Exchange Rates

The appropriate exchange rates used in the conversion of foreign currency transactions into the functional currency for reporting purposes.

Fixed Interest Rate

An interest rate on a liability, such as a loan or mortgage, that remains constant for either an agreed period of time or the entire term of the loan.

Functional Currency

The form of money used in the main economic region where a business is active and conducts its dealings.

Net Exchange Differences

The net result of gains or losses on foreign currency transactions and translation of foreign operations, reflecting the impact of exchange rates fluctuations on financial statements.