Which of the Following Is a True Statement

question 34

Multiple Choice

Which of the following is a true statement?

• A)As long as exchange rates do not always move in the same direction,the firm can stabilize its operating cash flows by diversifying its export market.
• B)The firm should not get into new lines of business solely to diversify exchange risk because conglomerate expansion can bring about inefficiency and losses.
• C)all of the options above
• D)none of the options

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Definitions:

Corporate Scandals

Refers to major failures within corporations that involve illegal, unethical, or morally questionable practices that come to public attention.

Stock Frauds

Illegal activities involving manipulation of stock markets to deceive investors and profit unlawfully.

Bill Clinton

The 42nd President of the United States (1993-2001), known for his policies on the economy, welfare reform, and his involvement in several scandals.

Aid to Families

A government welfare program designed to provide financial assistance to households, especially those with children, to alleviate poverty.