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.

---

Definitions:

Trial Balance

A financial statement that checks the balance of all debit and credit entries in a company's accounting ledger to ensure accuracy.

Ledger Accounts

Individual records that provide in detail the transactions associated with a company's assets, liabilities, equity, revenue, and expenses.

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debits and credits, ensuring that total debits equal total credits.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.