Indicators Pointing Towards the Local Overseas Currency as the Functional

question 14

Multiple Choice

Indicators pointing towards the local overseas currency as the functional currency include, that the:
I. Parent's cash flows are directly affected on a current basis.
II. Cash flows are primarily in the local currency and do not affect the parent's cash flows.
III. Sales prices are primarily responsive to exchange rate changes in the short-term.
IV. Production costs are determined primarily by local conditions.

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

---

Definitions:

Situational Attributions

The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.

Scots-Irish Herders

Descendants of Scottish and Irish immigrants in the United States, particularly those who engaged in herding and pastoral activities.

Emotional Labour

The effort to control feelings and outward emotional displays to adhere to a job's emotional expectations.