Which of the Following Is an Assumption of Most of the Traditional

Multiple Choice

Which of the following is an assumption of most of the traditional models in finance?

A) No nation can place constraints on the transfer of corporate resources.
B) A competitive marketplace exists in which the terms of trade are determined by the participants.
C) Cash flows in various parts of a multinational corporate system are always denominated in the same currencies.
D) The exchange rate is determined by direct negotiation between the host government and the multinational corporation.
E) The ability to curtail unprofitable operations is uniform in all the countries in which subsidiaries operate.