Which of the Following Is Not a Strategy That Corporations

question 91

Multiple Choice

Which of the following is not a strategy that corporations can use to transfer exchange rate risk?

• A) Forward Contracts
• B) Option Contracts
• C) Currency Swaps
• D) operate and sell in only one country

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Definitions:

Straight-Line Depreciation

A practice for dispersing the expense of a concrete asset across its functional life in regular yearly sums.

Working Capital

This denotes a financial metric highlighting a company’s short-term financial health, specifically its ability to cover short-term liabilities with its short-term assets.

Straight-Line Depreciation

A method for distributing the financial commitment of a physical asset over its operational life in uniform yearly figures.

Capital Budgeting

The process by which a business evaluates and selects long-term investments based on their potential to generate net cash flows over time.