What Is the Objective of Managing Operating Exposure

question 79

Multiple Choice

What is the objective of managing operating exposure?

• A)Stabilize cash flows in the face of fluctuating exchange rates.
• B)Selecting low cost production sites.
• C)Increase the variability of cash flows in the face of fluctuating exchange rates.
• D)Both a and c

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Definitions:

Overconfidence Bias

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy, leading to overly optimistic assessments and decision-making errors.

Majority Viewpoint

refers to the opinion or belief held by the greater number of individuals within a group or society.

Team Members

Individuals who are part of a team, collaborating and contributing towards achieving common goals or tasks.

Framing Bias

A cognitive bias where individuals’ decisions are influenced by the way information is presented to them, rather than the information itself.