If the Exchange Rate of Euros/U

question 2

Multiple Choice

If the exchange rate of euros/U.S. dollars is 0.74/1, then:

• A) it takes $0.74 to buy each euro.
• B) the euro is worth less than one U.S. dollar.
• C) each euro is worth approximately $1.35.
• D)one euro is worth approximately $1.

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Definitions:

Divestiture

The action of a company selling or disposing of an asset or subsidiary as a strategic business decision.

Unrelated Diversification

A business strategy whereby a company expands into industries that are not related to its current line of business.

Acquiring New Businesses

The process of a company purchasing or merging with other companies to expand its operations, enter new markets, or gain competitive advantages.

Distribution Alliance

A partnership between companies to allow for the more efficient distribution and availability of products.