What are the major lessor groups in the United States? What advantage does a captive leasing subsidiary have in a leasing arrangement?

Q: Choose the correct.The ownership and control of foreign assets such as a manufacturing plant is…

A: Option B is the correct answer

Q: Why would a company prefer a foreign currency option over a forward contract in hedging a foreign…

A: Foreign currency options have an advantage over forward contracts in that the holder of the option…

Q: What does it mean by "acquisitions versus alliance" when pertaining to diversifying and managing…

A: A company or a corporate entity or an organization can diversify and grow using different…

Q: In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are…

A: MNC's use of debt depends on various factors and the local interest rates is one of them.

Q: In a franchise arrangement, what are a franchisor’s typical performance obligations?

A: The franchise contract is recognized as a distinct series of performance obligations and essentially…

Q: Explain disadvantages of wholly owned subsidries.

A: A wholly-owned subsidiary is the one whose 100% shareholding is held by another company i.e. parent…

Q: explain how syndicated loans are used in international markets.

A: Syndicated Loans: A syndicated loan can be described as a funding provided to a corporation , a…

Q: If a firm does not have foreign subsidiaries, it is not subject to ____.

A: The answer and explanation is provided below:

Q: How many ways are there through which Islamic banks transfer ownership of the leased asset to the…

A: An arrangement in which the asset is provided by one party to the user of the asset is termed as a…

Q: Why is it so difficult to estimate the value of retained profits when translating the financial…

A: Introduction: Retained earnings: Retained earnings are the portion of a company's profits earned but…

Q: What factors create a foreign exchange gain on a foreign currency transaction? What factors create a…

A: Factors creating foreign exchange Gains or losses: 1) Having an exposure of receivables and payable.…

Q: What are the major lessor groups in the United States?What advantage does a captive have in a…

A: Lease: A contractual arrangement between the owner of the asset and the user of the asset for a…

Q: Do U.S. GAAP and IFRS differ in the amount of flexibility that companies have in electing the fair…

A:

Q: What justifies an exporter financing an importer? Is Explain.

A: There are imports and there are exports both are necessary parts of international trade and finance…

Q: Do international differences in financial leverage exist? Explain.

A: What is Financial Leverage? It means the amount of debt used by a firm to finance or purchase…

Q: Drexel Co. is a U.S.-based company that is establishing a project in a politically unstable country.…

A: Project financing: It is the process of funding the long term industrial and infrastructure projects…

Q: A parent company is a producer of production equipment, some of which is acquired and used by the…

A: Consolidation is a process in which the financial statements of a subsidiary is merged with the…

Q: Which of the following is a common sourde of export financing? a) A comercial bank loan b)Secured…

A: Export Finance - It is form of asset financed, specifically available for export oriented unit which…

Q: does it reduce forei

A: Financial instruments can be regarded as capital bundles that can be traded, or as assets that can…

Q: Under what pricing conditions is transfer pricing considered to be legal?

A: Transfer pricing means the pricing of goods or services that are bought or sold between members of…

Q: Describe the primary differences between IFRS and U.S. GAAP in the way leases are classified as…

A:

Q: why banker acceptance desirable for the exporter?

A: For foreign exchange, the approval of bankers is seen as a way of guaranteeing payment. The letter…

Q: Why would any seller offer trade financing, since it ties up working capital without generating any…

A: Introduction: Trade finance can be defined as a financial assistance which is provided in…

Q: Explain what is a hedging arrangement and how does it reduce foreign currency risk exposure?

A: Hedging is an arrangement made to reduce the risk of foriegn exchange. It is a strategy to offset…

Q: What problemsarise when a multinational company operates in acountry whose currency is not…

A: A convertible currency is the one that is readily available to purchase other currencies and is not…

Q: What are the benefits of recording a lease as short-term? To a large corporation?

A: Lease: A contractual agreement for an asset between two parties. The parties involved are lessee and…

Q: Evaluate whether IB can charge fee on extending commercial guarantee.

A: An introducing broker(IB) are the brokers in the future market who have a close connection with the…