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What is the financial objective of a business
A business is created to enhance wealth of its owners. This may come as a surprise, as there are other objectives which a business may pursue that are related to needs of others associated with the business. For instance, a business may seek to provide good working conditions for its employees, or it may look forward to conserve the environment for local community. Whereas a business may pursue these objectives, it's generally set up with a view to increasing the wealth of its owners. Practically, behaviour of businesses over time appears to be consistent with this objective.
Explain the Transaction Exposure versus Economic Exposure? In brief describe the following term: a) Spot market and forward market. b) Purchasing Power Parity or PPP.
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