If a Foreign Entity Is Only a Shell Company for Carrying

question 80

Multiple Choice

If a foreign entity is only a shell company for carrying accounts that could be carried on the parent's books,

• A)the functional currency would generally be the parent's currency.
• B)the functional currency would generally be the local currency.
• C)there is no reason to hedge transaction exposure.
• D)none of the above

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Definitions:

Frustrated

Feeling annoyed or less confident because one cannot achieve what one wants.

Practical Model

A straightforward and realistic approach or method designed to address specific problems, needs, or situations effectively.

High Validity

Refers to the extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Followers' Needs

The requirements or desires of individuals who look up to or are guided by a leader, which may influence their satisfaction and performance.