Which of the Following Statements Best Describes Financial Instruments

question 17

Multiple Choice

Which of the following statements best describes financial instruments?

• A) All financial instruments are a means of payment.
• B) Financial instruments can transfer resources between people but not risk.
• C) Financial instruments can transfer resources and risk between people.
• D) Financial instruments can transfer risk but not resources between people.

Understand the concept of cultural intelligence and its role in international management.

Grasp the significance of management's attitude toward international operations as posited by Howard Perlmutter.

Recognize the importance of cultural practices, such as business card exchanges in high-context cultures.

Describe the different orientations (ethnocentric, geocentric) towards international staffing and management.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Supplier

A party that provides goods or services to another entity, typically part of a supply chain.

Revenue

The entire financial income obtained from transactions involving the sale of products or the provision of services central to an organization's main operations.

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.