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Lady bird [3.3K]
3 years ago
5

Parco, Inc., a U.S. entity, has a 100% owned subsidiary, Subco, Inc., located in the country of Eastlaco. In which one of the fo

llowing arrangements would there be no foreign currency exchange risk associated with borrowing by either Parco or its subsidiary, Subco, prior to consolidation?
A. Parco borrows in the currency of Eastlaco.
B. Subco borrows in the U.S. dollar.
C. Subco borrows in the currency of Eastlaco.
D. Parco borrows in the currency of a third country.
Business
1 answer:
slega [8]3 years ago
4 0

Answer: C. Subco borrows in the currency of Eastlaco.

Explanation:

Exchange rate risk only occurs when an entity borrows in a currency that is not their own. This means that if the currency they borrowed in was to appreciate against theirs, they would have to pay more than usual.

Subco is located in Eastlaco so if they borrowed funds in the currency of Eastlaco they would not have to worry about exchange rate risk because they are paying back in their local currency which cannot appreciate or depreciate against itself.

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Which of the following statements regarding the Foreign Corrupt Practices Act (FCPA) is NOT TRUE? Group of answer choices Bribes
Kazeer [188]

The statement that is not the about foreign corrupt practices act is In an unstable political environment, payments made to local officials to avoid harassment of employees are acceptable.

<h3>Foreign Corrupt practices</h3>

The Foreign Corrupt Practices Act was established on 1977 in United States . It is a United State federal law that prohibits U.S. citizens from offering payment for business or bribing foreign government officials to benefit their business interests and retain businesses.

Citizens should not offer any payment to foreign officials for their business.

Therefore, The statement that is not the about foreign corrupt practices act is In an unstable political environment, payments made to local officials to avoid harassment of employees are acceptable.

Learn more on Foreign corrupt practices act from the link below.

brainly.com/question/8211495

3 0
3 years ago
If the demand for a monopoly's output shifts rightward, the change in quantity produced is
ehidna [41]

Answer:

The correct answer is option D.

Explanation:

A monopoly market consists of the only a single firm which produces goods with no close substitutes. Such a firm is a price maker and faces a downward-sloping demand curve.  

There is no supply curve as the behavior of producers cannot be predicted. A producer can charge any price but it is able to maximize profits at the point where the price is equal to marginal cost.  

Thus the change in quantity due to an increase in the demand for monopoly products cannot be predicted.

8 0
3 years ago
In addition to the legislators and the governor, there are others involved in the lawmaking process during both regular and spec
Leona [35]

Answer:

b. the public

Explanation:

When it comes to the legislative process of the government, the "citizens" <em>(the public) </em>play an active and direct role. This gives the public <u>the right to contribute regarding decisions that may have an impact on their lives.</u> It is very important that the government inform its citizens of their rights and responsibilities and the decisions that were made in order to obtain <em>"public awareness."</em>

The direct role of the public may be in the form of consultation, such as<em> asking for their feedback and considering their answers when it comes to the lawmaking process.</em> It is essential that their input in the decision-making process is considered.

So, this explains the answer.

4 0
4 years ago
A _______ is legally separate from its owner, and it pays its own taxes.
Tems11 [23]

Answer:

Corporation

Explanation:

A Corporation is a legal person with rights and duties. It is separated from its shareholders and it liable to pay tax

5 0
3 years ago
On September 1, 2018, Drill Far Company purchased a tract of land for $2,300,000. The land is estimated to have a salvage value
kipiarov [429]

Answer:

$562,500

Explanation:

Depletion expenses = Land expenses

Depletion expenses = [$2,300,000 - $50,000 / 4]

Depletion expenses = $2,250,000 / 4

Depletion expenses = $562500

So, the depletion expense recorded for 2018 is $562,500

6 0
3 years ago
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