Companies Can Deal with the Problem of Nonconvertibility of Currency

question 120

Multiple Choice

Companies can deal with the problem of nonconvertibility of currency by engaging in

• A)price discrimination.
• B)countertrade.
• C)arbitrage.
• D)price skimming.
• E)currency speculation.

---

Definitions:

Subsidiary

A company that is controlled by another company, usually referred to as the parent company, through ownership of more than 50% of its voting stock.

Non-controlling Interest

Equity interest in a subsidiary held by investors other than the parent company, representing their claim to the subsidiary's earnings and assets.

Entity Method

an approach in accounting where the financial transactions of a parent company and its subsidiaries are kept separate, instead of being consolidated.

Consolidated Shareholders' Equity

Represents the total equity interest in a company, including common stock, preferred stock, retained earnings, and accumulated other comprehensive income, as shown in the consolidated financial statements.