If the British Subsidiary of a European Firm Has Net

question 25

Multiple Choice

If the British subsidiary of a European firm has net exposed assets of £250,000, and the pound drops in value from €1.35/£ to €1.30/£, the European firm has a translation:

• A) gain of €12,500.
• B) loss of €12,500.
• C) loss of £12,500.
• D) gain of £12,500.

---

Definitions:

T-Account

A T-account is a visual representation of a ledger account that depicts a business transaction's effect on a company's accounts.

Continuous-Yes Close

A sales technique that involves asking a series of questions designed to get the customer to keep saying yes, building towards agreement on the final sale.

Price

The value or worth of a product.

Value

The importance, worth, or usefulness of something, often considered in terms of what a product or service offers in relation to its price.