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Explain the determinants of operating exposure.
Answer: The main determinants of a company’s operating exposure are
(a) The structure of the markets where the company sources its inputs, like labor and materials, and sells its products, and
(b) The company’s capability to mitigate the effect of exchange rate changes by adjusting its markets, product mix, and sourcing.
What is the explanation for leaset cost selection
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It's a small amount of money which is used for initial market research or product development for a new venture.
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What are the assumptions of MM(Modigliani Miller) approach?
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