Generally speaking,a firm is subject to high degrees of operating exposure

Question

Quizplus · Accepted Answer

Operating exposure refers to the potential impact on a firm's cash flows and profitability due to changes in exchange rates. A firm is subject to high degrees of operating exposure when either its cost or price is sensitive to exchange rate changes. This is because changes in exchange rates can affect the cost of inputs or the revenue received from exports or foreign operations, which can in turn affect the firm's profitability. Therefore, option C is the best choice as it includes both cost and price sensitivity.

Generally Speaking,a Firm Is Subject to High Degrees of Operating