--%>

Conglomerate expansion

Evaluate the given statement: “Firm may decrease its currency exposure by diversifying across the different business lines”.

E

Expert

Verified

Conglomerate expansion is too costly as the means of hedging the exchange risk exposure. The Investment within the several line of business should be made on the basis of its own merit.

   Related Questions in Financial Accounting

  • Q : Non-tradable asset Assume there is

    Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets.  How will non-tradable asset be priced?

  • Q : Swap broker and swap dealer State the

    State the difference between the swap broker and the swap dealer.

  • Q : What is the equivalent rate A bank

    A bank quotes an interest rate of 13.5% per annum with quarterly compounding. What is the equivalent rate with (a) continuous compounding and (b) annual compounding?

  • Q : Firms attaining the U.S. firms

    Presently, several foreign firms from both the developed and developing countries attained high-tech U.S. firms. What would have motivated these firms in order to attain the U.S. firms?

  • Q : Representative office of any bank

    Explain what is meant by the Representative office of any bank.

  • Q : Segmented capital market Assume that

    Assume that your firm is operating in the segmented capital market. State some of the actions that you would recommend to diminish the negative effects?

  • Q : Define uniform costing Give a short

    Give a short introduction about the term uniform costing?

  • Q : How Social Darwinism support business

    What is Social Darwinism and how it was utilized to support business?

  • Q : Proceeds on disposal The following

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

  • Q : Stages in the life cycle of a family

    There are seven typical stages in the life cycle of a family with children. Fully explain and give an example to describe each of those seven stages.