When the Manager Considers the Players' Requirements, the Part of the Value

question 73

Multiple Choice

When the manager considers the players' requirements, the part of the value chain is he most likely looking at is ____.

• A)inbound logistics
• B)operations
• C)outbound logistics
• D)marketing and sales
• E)research and development

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Definitions:

Foreign Exchange Risk

The potential change in earnings or financial position from fluctuating exchange rates affecting international financial transactions.

Forward Contract

An agreement to buy or sell an asset at a future date for a price agreed upon today.

Spot Rate

Refers to the immediate exchange rate at which one currency can be exchanged for another without any delay.

Fair Value Hedge

A type of hedge that is used to mitigate the risk of changes in the fair value of an asset or liability or an identified portion of such an asset or liability.