Answer: Enter into a futures contract
Explanation:
Wheldon Wheels inc. operates in the United states, The company exports car Parts to Taiwan which means they do business with companies in Taiwan. The amount that Wheldon Wheels inc receives when they export car parts depends on the Exchange rate between a US dollar and Taiwan Dollar.
Exchange rates between currencies fluctuates every day in the market which presents a problem of uncertainty because when exchange rate changes the value of the transaction changes and that will increase or decrease a company's profits in each transaction.
Wheldon Wheels Expects to receive 20 000 000 Taiwan dollars in 90 days, since the company is in The united states the amount of 20 000 000 of Taiwan Dollars Receivable will need to be converted into US dollars. The Problem is, The exchange rate may decrease or increase in the next 90 days which will affect how much Wheldon Wheels receives in dollars.
Wheldon Wheels inc may Protect them selves against Exchange rate Fluctuations by entering into A Future Contracts with a Bank or exchange dealer. Futures Contract will provide Wheldon Wheels inc with an opportunity to sell 20 000 000 Taiwan Dollars in 90 days at a fixed predetermined exchange rate. The Dealer Promises to Buy 20 000 000 Taiwan Dollars in 90 days at a Predetermined Fixed exchange rate.
example
suppose the (WW) enters into a Futures contract to sell 20 000 000 Taiwan Dollar in 90 days at an Fixed exchange rate of $1 = 1.5 Taiwan dollar, if the market exchange rate in 90 days is $1 = 1.3 Taiwan dollar Wheldon Wheels inc would be protected. The Exchange rate for the 20 000 000 Taiwan Dollar transaction would remain at $1 = 1.5 Taiwan dollar
Answer:
C. $410,000
Explanation:
Administrative and general expenses in Lee's multiple - step income statement is $410,000
i.e the Legal and audit fees $170,000 and Rent for office space $240,000 which will amount to $410,000
Note: General and Administrative expenses are incurred in the day-to-day operations of a business and are not tied to a specific function or department within the organisation.
Answer: 1 2 7 8
Explanation: plz mark me as brainiest im begging
Answer:
Dealers ; Brokers
Explanation:
Foreign exchange dealers make money or profit by buying stock at lower price and selling the same at a higher price. They do this by adding a markup on the price of stock bought by them and sell the same to a buyer. The markup serves as profit to dealers.
Foreign exchange brokers act as intermediary between buyers and sellers as traders could execute trades through a brokers only. A broker earns profit in the form of commissions and fees earned on executing each transaction.
