MNC's Often Use Derivatives to Control

question 40

Multiple Choice

MNC's often use derivatives to control:

• A)currency exposure.
• B)management compensation.
• C)operating exposure.
• D)hedging.

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Definitions:

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.

FUTA Tax

A United States federal tax levied on employers to fund state workforce agencies and unemployment benefits.

SUTA Tax

State Unemployment Tax Act; a tax that employers are required to pay to the state government to fund unemployment benefits for workers who lose their jobs.