1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirill115 [55]
3 years ago
6

Chicago Company has a subsidiary in Germany where it generates large profits. The subsidiary remits most of its earnings to the

parent each year. If Chicago Company wants to reduce its exposure to exchange rate risk, it might consider _______________ to finance the German subsidiary's operations.
Business
2 answers:
matrenka [14]3 years ago
6 0

Answer:instructing the German subsidiary to borrow euros from a bank in Germany

Explanation:A company may organize subsidiaries to keep its brand identities separate. This allows each brand to maintain its established goodwill with customers and vendor relationships. Subsidiaries can also help you position part of your business as an alternative to the parent company at a different price point.

The Chicago Company will instruct the German subsidiary to lend Euro from bank in Germany.

Gelneren [198K]3 years ago
5 0

Answer:

C) instructing the German subsidiary to borrow euros from a bank in Germany

Explanation:

In order for the Chicago company to reduce the exchange rate risk of the German subsidiaries, It might consider the German subsidiary borrowing euros from a bank in Germany to finance the operations of the German subsidiary.

Exchange rate risk is the possibility that the value of an investment will change when the currency is exchanged. It arises as a result of different currencies used by different countries.

Foreign investments face the problem of exchange rate risk because the operate in different countries using different currencies.

Difference in exchange rate could lead to loss of capital or Profits in a foreign investments

You might be interested in
What is important to consider about a facility for a business?
Mamont248 [21]

It is important to consider some factors when choosing a facility for your business. Some critical factors to consider include the following.

  • Location (on well-traveled streets, or tucked away in the country)
  • The interior layout: the amount of space, how it would be subdivided into rooms or work areas to best serve you
  • How it could be constructed or decorated to provide the capabilities and business atmosphere that best suits your operation
  • The exterior: its appearance (and that of surrounding buildings) and the impression that it conveys about your business
  • Provision for necessary features such as parking facilities and loading docks

<h3>What is a Business Facility?</h3>

A Business Facility refers to a building location or portion at which employees perform services for their employer.

It is important to note that a business facility  does not include any workplace or portion of a workplace that also serves as the employee's or employer's personal residence.

Learn more about business facility at  brainly.com/question/12255901

SPJ1

3 0
2 years ago
A government's comprehensive annual financial report (CAFR) is divided into three main sections. The statements, schedules, tabl
Savatey [412]

Answer:

Step wise detailed solution is given in the attached diagram

3 0
3 years ago
9. OMG Corporation just paid a $1.50 annual dividend on each share. It is planning on increasing its dividend by 15 percent a ye
Afina-wow [57]

Answer:

ggdhdhdhdhdjdhdhdhdhdhdhdhdhdbdbdbdbdbdbdbdbdbdbdbdbdbdbdndndndndbrbdbdbdb

Explanation:

bdbdndhrhehrhrhrhdhdh

5 0
2 years ago
A utilities consumer action panel could help resolve consumer complaints about high energy costs because the panel members are
otez555 [7]
The answer is A independent and unbiased
7 0
3 years ago
Multiple-step income statements show
devlian [24]

Answer:

both income from operations and gross profit.

Explanation:

As we know that

The income statement recognized the revenues earned and the expenses incurred for a particular period

And the multiple-step income statement refers to the classification of expenses like

The format is shown below:

Sales                                   XXXXX

Less: Cost of goods sold  XXXXX

Gross profit                        XXXXX

Less: Operating expenses

Administrative expenses     XXXXX

Selling expenses                  XXXXX

Operating income                 XXXXX

Non operating income or others

Less: Interest expense           XXXXX

Rent revenue                          XXXXX

Net income                             XXXXX

Therefore, the third option is correct

4 0
3 years ago
Other questions:
  • If 9,000 fans bought tickets totaling $135,000, what was the average revenue per ticket?
    6·1 answer
  • As the production manager, Carlos prefers long production runs of thousands of units in order to drive down unit costs. Anita, t
    5·1 answer
  • What will maximize the amount of interest you earn
    9·1 answer
  • Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio
    7·1 answer
  • The term "financial distress costs" includes which of the following? I. Direct bankruptcy costs II. Indirect bankruptcy costs II
    9·1 answer
  • In an economy where heating oil is the primary source of heat for most households, new supplies of natural gas, a substitute for
    9·1 answer
  • Explain how public disclosure is used as a tool to prevent market failures.
    7·1 answer
  • In a contract, what is consideration? A. Exchanging things of value B. Breaching the contract C. A business tort D. The minimum
    9·1 answer
  • How do you actually do this? On there template and save it or make my own template.? So confused.
    7·1 answer
  • in 2022 medrano manufacturing reported 3.9 billion in cash flows from operating actiivites but on ly 2.7 billion in net income w
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!