The Firm That Enters into a Futures Contract with Respect

question 146

Multiple Choice

The firm that enters into a futures contract with respect to foreign exchange does so:

• A)to offset possible loss in its collection process by a gain in the delivery process of the futures contract
• B)in anticipation of an increase in the value of the currency of the country for which the contract is established
• C)to decrease the cost of their sales transactions
• D)to eliminate a loss in the collection process of their accounts receivable in that country
• E)none of the above

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Definitions:

Marketing Strategy

An organization's plan for promoting and selling its products or services, including target market identification, positioning, and marketing mix elements.

Awareness

The state or quality of being conscious or knowledgeable about something, especially through personal experience or learning.

Prospect

A potential customer who has shown interest in a company’s products or services and is considered likely to convert into a paying customer.

Managing Customer Expectations

The process of understanding, influencing, and fulfilling the anticipated needs and perceptions of customers.