How Can the Way a Firm Arranges Its Financing Limit

question 20

Multiple Choice

How can the way a firm arranges its financing limit its currency risk?

• A)It can borrow more than it currently needs so that future cash needs are met.
• B)It can arrange for a line of credit to provide for future financing needs.
• C)It can coordinate its financing cash flow and its operational cash flow.
• D)It can sell debt instruments in its home currency.

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Definitions:

Entity

Something that exists independently with a distinctive identity, especially in the context of databases where it refers to an object about which data can be stored.

Cardinality

In database design, it refers to the uniqueness of data values contained in a column; in relationships, it describes the attributes of the relationship between tables.

Entity

An entity can refer to any individual, company, organization, or system that exists as a singular, identifiable unit.

Ternary Relationship

A type of association in database modeling where three entities participate together in a relationship.