Exchange rate risk is the risk that the cash flows from a foreign project, when converted to the parent company's currency, will be worth less than was originally projected because of exchange rate changes.

Answer the following statement true (T) or false (F)


True

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When the Federal Trade Commission (FTC) insists that a company stop making a false claim in an advertisement and that company agrees to stop, it is an example of a(n):

A) legal review B) cease and desist order C) administrative complaint D) consent order

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When Nabisco offers to cover half the cost of all local advertising for supermarkets that sell Oreo Cookies, the company is granting ________

A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances

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The Abel Company provided the following information from its financial records:       Net income$250,000 Common shares outstanding 1/1200,000 Common stock dividends$20,000 Common shares outstanding 12/31300,000 Preferred stock dividends$25,000 Preferred shares outstanding 1/110,000 Sales$1,000,000 Preferred shares outstanding 12/316,000 What is the amount of the company's earnings per share?

A. $1.00 B. $0.82 C. $0.90 D. $0.75

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"THINK," the acronym for dealing with difficult people contains which one of the following questions?

A) Is it helpful? B) Is it idiotic? C) Is it tormenting? D) Is it kissable?

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