SF-BEC

Question 1

Foreign currency forward exchange contract

Answer 1

an agreement to buy or sell a certain amount of a foreign currency at a specified future date at a specific exchange rate.

Question 2

Foundation of effective monitoring of internal controls

Answer 2

Tone at the top
Effective organizational structure
Understanding of control effectiveness

Question 3

Capital Budgeting

Answer 3

Capital budgeting is the process of a firm evaluating possible projects or long-term investments, and then undertaking the projects that fit the chosen risk/reward criteria.

Question 4

What are the steps in developing a Business continuity plan?

Answer 4

Conduct a business impact analysis to identify time-sensitive or critical business functions and processes and the resources that support them.

Identify, document, and implement to recover critical business functions and processes.

Organize a business continuity team and compile a business continuity plan to manage a business disruption.

Conduct training for the business continuity team and testing and exercises to evaluate recovery strategies and the plan.

Question 5

Price discrimination

Answer 5

Price discrimination is offering the same product to multiple consumer groups (distinct segments of consumers) at different prices. An example is a discount for college students on a company’s laptops.

Question 6

What is a business continuity plan

Answer 6

is the creation of a strategy through the recognition of threats and risks facing a company, with an eye to ensure that personnel and assets are protected and able to function in the event of a disaster.