Corporations Today Are Operating in an Environment in Which Exchange

question 42

Multiple Choice

Corporations today are operating in an environment in which exchange rate changes may adversely affect their competitive positions in the marketplace. This situation, in turn, makes it necessary for many firms to

• A)carefully manage their exchange risk exposure.
• B)carefully measure their exchange risk exposure.
• C)both a and b

---

Definitions:

Authorize and Pay

The process of approving financial transactions or disbursements and executing the payment accordingly.

Control Principle

An accounting principle that states the need for procedures and measures to regulate and ensure the accuracy of financial records.

Segregation of Duties

A key internal control mechanism that involves dividing responsibilities within an organization to reduce the risk of fraud or error.

Warehouse Custodian

An individual responsible for overseeing the storage and security of goods in a warehouse, ensuring proper inventory management and control.