Which of the Statement Below Is FALSE

question 37

Multiple Choice

Which of the statement below is FALSE?

• A) With an unexpected increase in exchange rates, the future cash flow of overseas operations can be less than anticipated, and thus the value of the business falls.
• B) A company has one more added risk exposure when dealing with foreign operations even if forward rates can be used to hedge a falling profit margin caused by unfavorable changes in exchange rates,
• C) Not all products and costs inflate at the same rate as the overall inflation rate of a country.
• D) Translation principles in many countries require the use of current exchange rates for certain equity, fixed asset, and inventory accounts, but historical exchange rates for current assets, current liabilities, and income accounts.

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Definitions:

Harm/Care

A moral foundation that emphasizes minimizing harm to others and caring for their well-being.

Authority/Respect

The recognition and adherence to someone’s right to lead or make decisions, often due to their position or knowledge.

Purity

The state of being free from moral fault or guilt, often associated with innocence or cleanliness.

Right-Wing Authoritarianism

A personality and ideological framework characterized by a submission to authority, aggression toward outgroups, and adherence to conventional norms.