Suppose You Put a Chocolate Layer on Pieces of Candy

question 35

Multiple Choice

Suppose you put a chocolate layer on pieces of candy. Compared with the amount of chocolate used to cover 1 pound of large pieces, if you cover 1 pound of smaller pieces you'll use

• A)less chocolate.
• B)the same amount of chocolate.
• C)more chocolate.
• D)makes no difference

---

Definitions:

Net Asset Balance Sheet Exposure

The risk of change in the value of a company's net assets due to exchange rate movements, reflected in the balance sheet.

Translation Adjustment

An adjustment made in the process of translating a foreign subsidiary's financial statements into the parent company's reporting currency.

Foreign Currency

Currency used in a country other than one's own, involving exchange risk when converting from one currency to another.