1. A combination of two entities in which only one legally ceases to exist is:
a. a subsidiary
b. a parent company
c. a consolidation Incorrect
d. a merger
2. Motorola has a contract to buy cellular telephones in Japan in 6 months. Payment will be in Japanese yen. What type of exchange rate risk does Motorola face?
a. economic
b. operating
c. transaction
d. translation