Which of the Following Is an Additional Question to Be

question 4

Multiple Choice

Which of the following is an additional question to be asked in determining whether a foreign entity's functional currency is the same as that of the reporting entity?

• A) Are the transactions with the reporting entity a high or low proportion of the foreign operation's activities?
• B) Are the foreign operation's activities carried out as an extension of the reporting entity, rather than being carried out with a significant degree of autonomy?
• C) Do the cash flows from the foreign operation's activities directly affect the reporting entity's cash flows?
• D) All of the above.

---

Definitions:

Environmental Opportunities

Refers to circumstances in the external environment that an organization can exploit to its advantage, often related to sustainability, market trends, or regulatory changes.

New Technologies

Emerging or recently developed technological advancements, tools, or methods that potentially change existing practices or create new opportunities.

E-Business Strategy

A plan of action for leveraging digital technologies and Internet to conduct a company’s business processes, from procurement to customer service.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as superior quality, innovation, or cost efficiency.