Combination of two entities in which only one legally ceases

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Reference no: EM131890087

1. A combination of two entities in which only one legally ceases to exist is:

a. a subsidiary

b. a parent company

c. a consolidation Incorrect

d. a merger

2. Motorola has a contract to buy cellular telephones in Japan in 6 months. Payment will be in Japanese yen. What type of exchange rate risk does Motorola face?

a. economic

b. operating

c. transaction

d. translation

Reference no: EM131890087

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