Answer:
faces exchange rate risk to the extent that it has international competitors in the domestic market.
Explanation:
Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.
So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.
For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.
Answer:
Overall Inflation
Explanation:
In order to compare prices of any good at two different years, you should always adjust for overall inflation. Inflation is the overall increase in value of goods over a period, which means that a unit of currency buys less goods at the current year than it did at the previous year.
Answer:
The correct answer is (b)permitted because the contract is just for music lessons.
Explanation:
Recall that,
Johann, a well known musician agrees to give out ten lessons of guitar to Elton for an amount of $ 2000. this contract forbids delegation.
Since Johann delegates his obligation to Eugene who is a second year student in music, then his delegation is only allowed because the contract is to take music lessons and nothing more.
Answer:
FIFO ending inventory = $290000
Explanation:
given data
current year inventory = $200,000
end of the current year inventory = $250,000
start of the year LIFO reserve = $30000
end of the year LIFO reserve = $40,000
solution
LIFO reserve is difference between inventory using LIFo and inventory using FIFO
so
FIFO ending inventory = LIFO ending inventory + LIFO reserve ...............1
put her evalue we get
FIFO ending inventory = $250000 + $40000
FIFO ending inventory = $290000
Answer: indenture
Explanation:
The bond indenture is a legal contract that or covers a purchase obligation or a debt.
Therefore, the legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond indenture. This document describes the number of bonds authorized, their par value, and the contract interest rate.
