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Companies L. M N and O:
* are based in a country that uses the RS as its currency
* have an objective to grow operating profit year on year
* have the same total levels of revenue and cost
* trade with companies or individuals in the United States. All import and export trade with companies or individuals in the United States is priced in US$.
Typical import/export trade for each company in a year are as follows:
Which company's growth objective is most sensitive to a movement in the USS / RS exchange rate?
Suggested Answer: A, B, E
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41 comments · newest first
JU
Julianna
12 months ago
Totally agree, Company M seems like the obvious choice here!
AL
Alpha
12 months ago
Wait, are we sure the exchange rate impacts all companies equally?
OS
Osvaldo
1 year ago
Company O's growth could really take a hit with a weaker RS.
DU
Dudley
1 year ago
I think Company N might be more affected due to its import reliance.
SH
Shenika
1 year ago
Company M has the highest export volume, so it's definitely sensitive to exchange rates.
ME
Melvin
1 year ago
I feel like Company O could be the answer since it had significant export activities, but I’m not confident about the specifics.
MA
Margarett
1 year ago
This question reminds me of a practice question where we analyzed how different companies' revenue streams were affected by currency movements. I think Company N might be similar.
CO
Cordie
1 year ago
I’m not entirely sure, but I think Company M had the highest volume of trade with the US, which might make it more sensitive to exchange rate changes.
CH
Cherilyn
1 year ago
I remember we discussed how exchange rate fluctuations can impact profit margins, especially for companies heavily reliant on imports or exports.
DI
Dick
1 year ago
Okay, I think I've got a strategy for this. I'll focus on creating separate rules for Accounting and Sales, and then using the Objects tab to apply them only to those departments.
JE
Jennie
1 year ago
I'm a little confused by the wording of the question and the answer choices. Can a job worth hierarchy really do all of those things? I'm not sure which one is the best description. I may have to guess on this one.
MA
Margurite
1 year ago
Okay, I've got this. Both static and dynamic analysis usually involve using a tool, and they're both related to reviews in some way. I'll focus on those similarities.
KA
Katlyn
1 year ago
The answer is clearly D. Company O has the most trade in USD, so their profits will be the most affected by changes in the exchange rate.
AL
Alaine
1 year ago
The answer is clearly D. Company O has the most trade in USD, so their profits will be the most affected by changes in the exchange rate.
CA
Carin
1 year ago
D) Company O
GO
Golda
1 year ago
C) Company N
MA
Man
1 year ago
B) Company M
GA
Gail
1 year ago
A) Company L
RO
Roslyn
1 year ago
C'mon, it's pretty obvious that Company O is the one to watch here. Their numbers show they're the most exposed to the USD/RS exchange rate.
MY
Myra
1 year ago
Definitely, Company O needs to closely monitor the USD/RS exchange rate for their growth objective.
RO
Rodrigo
1 year ago
Yeah, their import and export numbers with the US are the highest among the companies.
HE
Helaine
1 year ago
I agree, Company O seems to be the most sensitive to the exchange rate.
ER
Erinn
2 years ago
Haha, I bet Company O's accountant is sweating bullets every time the exchange rate fluctuates. Gotta love those global trade challenges!
WI
Willetta
1 year ago
It's a tough spot to be in, but it's all part of the game when you're involved in global trade.
KA
Karan
1 year ago
I think Company O needs to come up with a solid currency risk management strategy.
AD
Adolph
1 year ago
Yeah, Company O must have a tough time managing their profits with the fluctuating exchange rates.
JA
Janine
1 year ago
Company O's growth objective is definitely the most sensitive to exchange rate movements.
EM
Emiko
1 year ago
It's a tough spot to be in, but I guess it comes with the territory of international trade.
KR
Kristin
1 year ago
I wonder how they hedge against those risks, it must be a constant challenge for them.
AS
Asuncion
1 year ago
Yeah, Company O must have a tough time managing their profits with all that currency fluctuation.
FR
Francene
1 year ago
I agree, global trade definitely adds an extra layer of complexity to their growth objectives.
TA
Tarra
1 year ago
Company O's accountant must be on edge with those exchange rate fluctuations!
VI
Vicente
1 year ago
Company O's growth objective is definitely the most sensitive to exchange rate movements.
LE
Lenita
2 years ago
But Company O also has a significant amount of trade with the United States. It could also be sensitive to the exchange rate.
LE
Leana
2 years ago
I agree with you, Kara. Company M has the highest proportion of import and export trade with the United States.
TI
Timmy
2 years ago
Company O's growth objective is the most sensitive to the USD/RS exchange rate movement. They have the highest proportion of exports and imports in USD compared to the other companies.
GL
Glory
1 year ago
It's important for Company O to closely monitor exchange rate fluctuations to protect their growth objective.
JA
Jade
1 year ago
Company L, M, and N are not as impacted because their trade is more balanced.
GA
Galen
1 year ago
That makes sense, since they have the highest exposure to USD in their trade.
SA
Salina
2 years ago
Company O is definitely the most affected by exchange rate movements.
KA
Kara
2 years ago
I think Company M's growth objective is most sensitive to the exchange rate.