The Impact of Financing in Determining the Functional Currency Is

question 74

Multiple Choice

The impact of financing in determining the functional currency is that

• A)financing does not impact the choice of functional currency due to the integrated nature of capital markets.
• B)if the financing of the foreign entity is primarily denominated in the foreign currency and the debt service obligations are normally handled by the foreign entity,the functional currency is the foreign currency.
• C)if the financing of the foreign entity is primarily from the parent,with debt service obligations are normally handled by the parent,the functional currency is the home currency.
• D)if the financing of the foreign entity is primarily denominated in the foreign currency and the debt service obligations are normally handled by the foreign entity,the functional currency is the foreign currency.Additionally,if the financing of the foreign entity is primarily from the parent,with debt service obligations are normally handled by the parent,the functional currency is the home currency.

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Definitions:

Phishing Attacks

Fraudulent attempts to obtain sensitive information by disguising oneself as a trustworthy entity in electronic communications.

Dumpster Diving

The practice of sifting through commercial or residential waste to find items that have been discarded that are still useful, can be recycled, or have value.

Tailgating

An unauthorized person gaining access to restricted areas by following closely behind someone who has legitimate access.

Airport Terminals

Buildings at airports where passengers transfer between ground transportation and the facilities that allow them to board and disembark from airplanes.