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:

Salaried Staff

Employees who are paid a fixed amount by their employers, regardless of the hours worked, typically on an annual basis.

Written Goals

Specifically defined objectives that are documented in writing, serving as a guide to help individuals or organizations focus their efforts and measure progress.

Bureaucratic Structure

An organizational system characterized by a fixed hierarchy, specialization of labor, adherence to fixed rules, and a relationship of authority based on impersonal positions.

Hierarchy

An organization or structure where individuals or groups are arranged in a hierarchy based on their authority or status.