Which of the Following Factors Is a Secondary Indicator Used

question 36

Multiple Choice

Which of the following factors is a secondary indicator used to choose a functional currency?

• A)Currency in which the cost of goods sold is denominated
• B)Currency in which the selling prices are denominated
• C)Sources of competition and regulations
• D)Ability of subsidiary to generate cash flows to service its debts

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Definitions:

Aggregate Planning

A method involving the creation, examination, and upkeep of an initial, rough timetable for all the activities within an organization.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Exercise Price

The set price at which an option's holder has the right to purchase or sell the asset in question.

Intrinsic Value

The true or inherent value of a financial asset, based not on market price but on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.