With regard to translation exposure versus operating exposure
A)upper management should be more concerned with translation exposure.
B)any discussion really involves speculation about foreign exchange rate changes.
C)upper management should be more concerned with operating exposure.
D)none of the options

Question

Quizplus · Accepted Answer

Upper management should be more concerned with operating exposure as it relates to the long-term effects of foreign exchange rates on the company's cash flows and competitiveness. Translation exposure, on the other hand, deals with short-term accounting adjustments due to exchange rate fluctuations and is more of a concern for the accounting department. Discussions about both types of exposure are based on speculation about future exchange rate changes, but operating exposure has the potential to impact the company's long-term viability.

With Regard to Translation Exposure Versus Operating Exposure