____________ exposure is an analysis of the effects of currency changes on a firm's operating cash flow.
A)Operating
B)Cash flow
C)Translation
D)Profit

Question

Quizplus · Accepted Answer

Operating exposure, also known as economic exposure, involves analyzing how a firm's future cash flows and market value are affected by currency fluctuations. It goes beyond the immediate impact of exchange rate changes on reported earnings (translation exposure) to consider the broader, long-term effects on a company's competitive position and cash flows.

____________ Exposure Is an Analysis of the Effects of Currency