If a Sale Made in a Foreign Subsidiary Is in the Local

question 121

Multiple Choice

If a sale made in a foreign subsidiary is in the local currency,and there is a time lag on payment,

• A) there is likely to be exchange risk.
• B) interest may be due.
• C) there is no transaction risk because the currency is local.
• D) economic risk may be present.

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Definitions:

Dichotomous Thinking

A cognitive distortion involving viewing situations, people, or self-evaluations in terms of extreme black-and-white categories, without recognizing any middle ground.

Thanatos

In psychoanalytic theory, it refers to the death drive, which is a concept suggesting humans hold an unconscious wish to die or self-destruct.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification and diagnostic tool for mental disorders used by healthcare professionals.

Altruistic Suicide

A concept by sociologist Émile Durkheim, describing a type of suicide that occurs when individuals sacrifice their life for the perceived benefit of the community.