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:

Sperm Cell

A male reproductive cell or gamete that is crucial for fertilization and the creation of a new organism.

Ovum

The female reproductive cell or egg in animals and plants, which can fuse with a male sperm to form a zygote.

Conception

The process of becoming pregnant involving fertilization and the implantation of an embryo in the womb.

Amniocentesis

Amniocentesis is a medical procedure used in prenatal diagnosis, where a small amount of amniotic fluid, which contains fetal tissues, is extracted from the amnion or amniotic sac surrounding a developing fetus, to test for genetic conditions or other fetal infections.