A Corporation That Can Source Its Products in One Country,sell

question 24

Multiple Choice

A corporation that can source its products in one country,sell them in another country,and raise the funds in a third country

• A)is a multinational corporation.
• B)is a domestic firm if all of the shareholders are from the same country.
• C)enjoys a built-in hedge against exchange rate risk.
• D)enjoys a built-in hedge against political risk.

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Definitions:

Implementing Controls

The process of establishing and applying mechanisms to manage or regulate actions within an organization or system.

Threat

Anything that poses a potential danger to the integrity, confidentiality, or availability of information or resources.

Risk Acceptance

The conscious decision to accept the potential fallout of a risk without taking action to mitigate it.

Security Procedures

Protocols or measures adopted to protect systems, networks, and data from cyber threats.