Operating Exposure in Multinational Finance Quiz

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is another name for operating exposure?

  • Economic exposure (correct)
  • Competitive exposure
  • Strategic exposure
  • Financial exposure

What is net operating exposure?

  • Is the gross finance exposure minus gross operating exposure
  • Is the net result of all cash outflows and inflows by currency (correct)
  • Is static in nature regardless of the macro-environment
  • Is the difference between the parent company and its subsidiaries exposures

Which type of international risk exposure measures the change in present value of a firm resulting from changes in future operating cash flows caused by unexpected change in exchange rates?

  • Translation exposure
  • Accounting exposure
  • Operating exposure (correct)
  • Transaction exposure

Is the following statement true or false: The goal of operating exposure analysis is to identify strategic operating techniques the firm might adopt to enhance value in the face of unanticipated exchange rate changes.

<p>True (C)</p> Signup and view all the answers

Which of the following is not a synonym for operating exposure?

<p>Financial exposure (C)</p> Signup and view all the answers

What is another name for operating exposure?

<p>Economic exposure (C)</p> Signup and view all the answers

What is net operating exposure?

<p>The net result of all cash outflows and inflows by currency (C)</p> Signup and view all the answers

What type of international risk exposure measures the change in present value of a firm resulting from changes in future operating cash flows caused by unexpected change in exchange rates?

<p>Operating exposure (D)</p> Signup and view all the answers

True or False: The goal of operating exposure analysis is to identify strategic operating techniques the firm might adopt to enhance value in the face of unanticipated exchange rate changes.

<p>True (A)</p> Signup and view all the answers

What does operating exposure analysis aim to identify?

<p>Strategic operating techniques to enhance value in the face of unanticipated exchange rate changes (C)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Browser