Freedom Energy Group (Scenario)

Freedom Energy Group (Scenario)
Freedom Energy Group (FEG) is a major American energy services group based in Oklahoma. FEG manufactures products to facilitate oil and gas exploration and is involved in the construction of oil refineries and gas pipelines around the world. FEG managers are considering the purchase of a Canadian energy firm, Maple Leaf Energy, which manufactures pipeline stabilization products. The financial management division of FEG is considering the risks and benefits of purchasing Maple Leaf.
-Which of the following most likely supports the purchase of Maple Leaf by FEG?

A) Canadian and U.S. accounting systems and regulations are harmonized.
B) Maple Leaf financial records lack transparency despite tax audits.
C) Currency traders anticipate FEG will need to hedge the Canadian dollar.
D) FEG should be able to attain a fronting loan for the purchase of Maple Leaf.