A. listen carefully to each other and ask questions to clarify
Active listening is one important factor to conflict resolution. The other answer choices are irrelevant or unhelpful for the task.
Answer:
C. $200 net loss
Explanation:
The net loss or gain is calculated on hedging to determine whether the hedge has been beneficial for the company or not. Hedging is a process to transfer exchange rate movement risk. This is usually suitable for the companies who have receipts or payments in foreign currencies.
The hedging gain loss can be calculated as:
Forward rate at the time of contract - spot rate today
$1.21 - 1.232 = 0.0232
Answer:
Explanation:
In the given scenario, the dollar interest rate increases as the tax on interest rate earnings is removed, . Thus, the interest rate parity condition is given below:
iH = iF + Ee/E – 1, where “iH=dollar interest rate” and “iF= euro interest rate” and “E=spot dollar-euro exchange rate”.
“iH” increases supposing the tax is removed , and in order to maintain the equality, “E” must decrease. Therefore, dollar-euro exchange rate decreases, Export will also decrease and import will increase. The euro interest rate will remain the same.
Answer: Contingency
Explanation: In simple words, contingency refers to the event that may or may not happen in the future and depends on certain circumstances.
These are usually the misshapen or potential threats that the organisation may face in the future, so the management tries to make advance funds and report for contingent liabilities so they can tackle the problem effectively.
In the given case, Hawley corporation reported liabilities in their balance sheet for the events that may or may not occur in the future. Hence we can conclude that they reported contingency.
Answer:
F
Explanation:
Tax incidence is concerned with tax loopholes. FALSE.
The belief that taxes should be paid based on benefits received, despite total income, is known as the benefit principle of taxation.