Translation exposure is a source of concern because it affects:
A) future cash flows
B) market share
C) financial indicators
D) the competitiveness of the firm

Question

Quizplus · Accepted Answer

Translation exposure affects financial indicators because it involves the impact of currency fluctuations on a company's financial statements, particularly when foreign operations' financials are consolidated into the parent company's financial statements. It does not directly affect future cash flows, market share, or the competitiveness of the firm.

Translation Exposure Is a Source of Concern Because It Affects