Which of the Following Describe Ways That a Business Manages

question 10

Multiple Choice

Which of the following describe ways that a business manages foreign exposure?
I.Hedge in the futures market
II.Hedge in the options market
III.Slow payments of currencies expected to appreciate
IV.Slow collections of currencies expected to depreciate

• A) I only
• B) I and II
• C) III and IV
• D) II, III, and IV

Understand and apply the double-declining-balance and straight-line methods of depreciation.

Distinguish between different types of assets: fixed assets, intangible assets, natural resources, and none of these.

Record and understand the effects of asset impairment, particularly goodwill impairment.

Understand and calculate depletion expense for natural resources.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or sensitive information.

Duty of Diligence

An obligation to exercise reasonable care and diligence in the performance of obligations, typically referring to the conduct expected of directors, officers, and professionals.

Conflict of Interest

A situation where an individual's personal interests could interfere with their professional duties or responsibilities.

RMBCA

The Revised Model Business Corporation Act, which provides a model framework for the governance of corporations, intended to standardize corporate law across jurisdictions.