What Term Is Used to Describe the Circumstances Under Which

question 3

Multiple Choice

What term is used to describe the circumstances under which Amazing Corporation is entering the forward contract?

• A)Hedge of an unrecognized foreign currency firm commitment
• B)Hedge of a recognized foreign-currency-denominated asset
• C)Hedge of a forecast foreign-currency-denominated transaction
• D)Hedge of net investment in foreign operations

---

Definitions:

Divesting

The process of selling off subsidiary business interests or investments, typically to refocus core activities or raise capital.

Compensating

Providing something, typically money, to make up for a loss, damage, or inconvenience caused.

Acquiring

The process of obtaining ownership or control of something, often referenced in the context of corporate takeovers or purchasing assets.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount for immediate cash.