Which of the Following Is a Major Reason for Firms

question 19

Multiple Choice

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

• A) They will be required to repay only the interest.
• B) They can obtain more favorable 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.

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Definitions:

Limited Liability Company (LLC)

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.

Missing Amount

A term used in accounting and finance to denote a value that must be found within a set of numbers or financial statements when it is not explicitly provided.

Service Business

A type of business that provides intangible products, such as expertise, time, or effort, to consumers in exchange for payment.

Retail Business

A type of business that sells goods directly to consumers, typically operating from physical locations or through online platforms.