Exam 15: Understanding the Roles of Finance and Accounting in Global Competitive Advantage

In case of a _____ contract the firm will pay that rate specified at the beginning of the contract regardless of what the current exchange rate is at the date of the final settlement.

Why do multinational firms choose to raise money in foreign markets?

In the case of _____ financing, firms can borrow money from banks or by selling bonds.

Which of the following statements holds true for cost of capital?

Which of the following statements holds true for trade credit?

Investors and banks use financial statements to determine whether to invest in or loan capital to the firm.

Which of the following statements holds true for a centralized financial organization structure?

Consolidating financial statements of subsidiaries located in different countries poses problems because of the different currencies used in different countries.

Which of the following statements holds true for a spot exchange rate?

Which of the following statements holds true for multilateral netting?

Which of the following statements is true about bilateral netting?

_____ refers to all the stock exchanges worldwide where firms can buy and sell stock for financing an investment.

What alternatives to interest and speculative investments are approved by Sharia?

In countries where companies tend to rely more on banks for funding, accounting rules are framed such that assets are valued conservatively to protect a bank's investment.

The process of _____ budgeting helps a firm decide which major investment projects will be most economically advantageous for the firm by assessing each project's benefits, costs, and risks.

Some companies may gain greater efficiencies and stronger controls by making a move from the GAAP to the IFRS.

An ice cream vendor signs a franchising agreement with the distributor. Under the agreement the distributor agrees to provide ice cream stock with a 10% discount on payment within 30 days, and a 20% discount on payment within 10 days. The distributor allows the operator 90 days to pay for the ice cream stock in full. The above serves as an example of:

Sharia prohibits "gharar" which means "_____" and includes conventional practices like short selling.

An Indonesian importer needs U.S. dollars to pay for the shipment that he has just received. He will have to purchase the dollars to pay for the shipment. He exchanges rupiah for U.S. dollars which he pays to the foreign exporter. The rate at which he buys US dollars in the market is known as the _____.

Premium pricing, bank fees, and interest payments are costs associated with the current-rate method of foreign-currency translation.