Which of the Following Is a Characteristic of the Complex,stable

question 61

Multiple Choice

Which of the following is a characteristic of the complex,stable environment?

• A)It has a lower uncertainty level than the simple, stable environment.
• B)It has only a few external environments.
• C)Only a few elements need to be considered for an organization to perform well.
• D)External elements do not change rapidly in this environment.

---

Definitions:

Hedge Accounting

An accounting method that modifies the normal treatment of gains and losses from hedging activities so that they are recorded in the same period as the offsetting gains or losses on the hedged item.

Foreign Currency Firm Commitments

Agreements to execute a financial transaction in a foreign currency at a future date, at a predetermined rate or price.

Cash Flow Hedge

A form of hedge accounting that aims to reduce the exposure to variability in cash flows related to a specific risk.

Foreign Currency Option

A financial derivative that gives the holder the right, but not the obligation, to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.