Final answer:
Most international businesses require budgets and performance data to be expressed in multiple currencies. For example, a Chinese firm exporting abroad may earn U.S. dollars but need Chinese yuan to pay their workers. This creates a need for exchanging currencies in the foreign exchange market. Therefore, the statement is false.
Step-by-step explanation:
False. While it is common for international businesses to consolidate financial statements and performance data in a common or "corporate currency" for reporting purposes, it is not always the case that all budgets and performance data within the firm are expressed exclusively in the corporate currency.
In multinational corporations, different subsidiaries or divisions may operate in different currencies, and there could be instances where budgets and performance data are maintained in local currencies. The choice of currency for budgets and performance data may depend on various factors, including the structure of the organization and the nature of its operations across different countries.