Question 1

In order to correctly record transactions, MNCs need to define 3Cs. The 3Cs include the following except _______.

Accepted Answer

A)  cash 
B)  calendar 
C)  currency 
D)  chart of account 
A)  cash 
B)  calendar 
C)  currency 
D)  chart of account

Question 2

Tools MNCs may use to protect financial resources include the following except _____.

Accepted Answer

A)  derivative financial instruments 
B)  timing change of fund transfer (e.g., lag or lead) 
C)  creating unequal foreign currency inflow and outflow 
D)  diversifying financial resources 
A)  derivative financial instruments 
B)  timing change of fund transfer (e.g., lag or lead) 
C)  creating unequal foreign currency inflow and outflow 
D)  diversifying financial resources

Question 3

What accounting challenges do multinational companies face in international markets?

Accepted Answer

Because of differences in regulations, M

Question 4

What approaches can a multinational company use to effectively manage and protect its financial resources around the world?

Accepted Answer

The answer of What approaches can a multinational company use...

Question 5

Which of the following statements is correct?

Accepted Answer

A)  Cross listing helps lower the costs of reporting and compliance 
B)  Government financing can take form of loans or equity 
C)  MNCs can only get government financing from home-country governments 
D)  Eurocurrency loans typically have higher interest rates than domestic loans 
A)  Cross listing helps lower the costs of reporting and compliance 
B)  Government financing can take form of loans or equity 
C)  MNCs can only get government financing from home-country governments 
D)  Eurocurrency loans typically have higher interest rates than domestic loans

Question 6

In the Eurocurrency market, Eurocurrency refers to ______________.

Accepted Answer

A)  currency banked outside its country of origin 
B)  currency banked in the Euro zone 
C)  currency banked outside of the Euro zone 
D)  currency banked as Euro 
A)  currency banked outside its country of origin 
B)  currency banked in the Euro zone 
C)  currency banked outside of the Euro zone 
D)  currency banked as Euro

Question 7

What are your thoughts on the merger of Burger King and Tim Hortons?

Accepted Answer

The answer of What are your thoughts on the merger...

Question 8

Cash pooling has the following benefits except _________.

Accepted Answer

A)  accumulating a large balance in a centralized account to get a better interest rate 
B)  using cash excesses from some subsidiaries to fund the cash needs of other subsidiaries 
C)  lowering the total requirement for precautionary cash balance 
D)  reducing the amount and number of money transfers 
A)  accumulating a large balance in a centralized account to get a better interest rate 
B)  using cash excesses from some subsidiaries to fund the cash needs of other subsidiaries 
C)  lowering the total requirement for precautionary cash balance 
D)  reducing the amount and number of money transfers

Question 9

Should countries that have not converted to IFRS (e.g., the U.S.) follow Canada's step?

Accepted Answer

The answer of Should countries that have not converted to...

Question 10

The following countries/regions are known for their low taxes except _____.

Accepted Answer

A)  Bermuda 
B)  Cuba 
C)  Hong Kong 
D)  Ireland 
A)  Bermuda 
B)  Cuba 
C)  Hong Kong 
D)  Ireland

Question 11

What are the advantages and disadvantages of different financial sources for MNCs?

Accepted Answer

The answer of What are the advantages and disadvantages of...

Question 12

How can professional service firms like the Big Four help international businesses?

Accepted Answer

The case highlights the following servic

Question 13

What challenges do different accounting standards and currencies impose on the accounting function of international business?

Accepted Answer

The answer of What challenges do different accounting standards and...

Question 14

Which of the following statements is correct?

Accepted Answer

A)  Capital budgeting is easier for MNCs because they can disperse financial resources globally 
B)  MNCs need to structure the bank accounts and cash balances of their subsidiaries to effectively manage their financial resources 
C)  Such cash management activities as global liquidity and foreign exchange exposure should be decentralized to lower risks 
D)  Local disbursement, collection, and payroll should be centralized to improve efficiency 
A)  Capital budgeting is easier for MNCs because they can disperse financial resources globally 
B)  MNCs need to structure the bank accounts and cash balances of their subsidiaries to effectively manage their financial resources 
C)  Such cash management activities as global liquidity and foreign exchange exposure should be decentralized to lower risks 
D)  Local disbursement, collection, and payroll should be centralized to improve efficiency

Question 15

A disadvantage of debt financing is:

Accepted Answer

A)  It increases the cost of capital 
B)  It can be risky if a firm has excessive debts 
C)  It requires a company to relinquish some control of the business 
D)  It is universally available to all firms 
A)  It increases the cost of capital 
B)  It can be risky if a firm has excessive debts 
C)  It requires a company to relinquish some control of the business 
D)  It is universally available to all firms

Question 16

What is the purpose of analyzing capital structure?

Accepted Answer

A)  To decide on an appropriate mix of equity and debts 
B)  To increase the cost of capital 
C)  To increase the leverage of a firm 
D)  To lower the debts a firm has 
A)  To decide on an appropriate mix of equity and debts 
B)  To increase the cost of capital 
C)  To increase the leverage of a firm 
D)  To lower the debts a firm has

Question 17

How did Apple reduce its total tax payment?

Accepted Answer

The answer of How did Apple reduce its total tax...

Question 18

Which of the following statements is incorrect?

Accepted Answer

A)  An MNC's subsidiary in a highly inflationary economy should use the parent firm's reporting currency as its functional currency 
B)  The current rate methods translate all monetary assets and liabilities at the exchange rate on the transaction date 
C)  The temporal method translates all nonmonetary assets and liabilities at the exchange rate on the transaction date 
D)  When presenting an MNC's financial information as one economic unit, intra-group transactions should be eliminated. 
A)  An MNC's subsidiary in a highly inflationary economy should use the parent firm's reporting currency as its functional currency 
B)  The current rate methods translate all monetary assets and liabilities at the exchange rate on the transaction date 
C)  The temporal method translates all nonmonetary assets and liabilities at the exchange rate on the transaction date 
D)  When presenting an MNC's financial information as one economic unit, intra-group transactions should be eliminated.

Question 19

When a company sell shares through private placement, it conducts __________.

Accepted Answer

A)  intercompany financing 
B)  debt financing 
C)  equity financing 
D)  public offering of shares 
A)  intercompany financing 
B)  debt financing 
C)  equity financing 
D)  public offering of shares

Question 20

What are your thoughts on Apple's tax avoidance practices? Were they "good"?

Accepted Answer

The answer of What are your thoughts on Apple's tax...

In order to correctly record transactions, MNCs need to define 3Cs. The 3Cs include the following except _______.

Tools MNCs may use to protect financial resources include the following except _____.

What accounting challenges do multinational companies face in international markets?

What approaches can a multinational company use to effectively manage and protect its financial resources around the world?

Which of the following statements is correct?

In the Eurocurrency market, Eurocurrency refers to ______________.

What are your thoughts on the merger of Burger King and Tim Hortons?

Cash pooling has the following benefits except _________.

Should countries that have not converted to IFRS (e.g., the U.S.) follow Canada's step?

The following countries/regions are known for their low taxes except _____.

What are the advantages and disadvantages of different financial sources for MNCs?

How can professional service firms like the Big Four help international businesses?

What challenges do different accounting standards and currencies impose on the accounting function of international business?

Which of the following statements is correct?

A disadvantage of debt financing is:

What is the purpose of analyzing capital structure?

How did Apple reduce its total tax payment?

Which of the following statements is incorrect?

When a company sell shares through private placement, it conducts __________.

What are your thoughts on Apple's tax avoidance practices? Were they "good"?

Globalization

Trade

Foreign Direct Investment

Economic Environment

Political and Legal Environment

Social and Cultural Environment

The Foreign Exchange Market and the International Monetary System

Managing Entry and Exit Decisions

Managing People

Managing Operations

Managing Customers

Managing Sustainability

Filters

Exam 10: Managing Money

In order to correctly record transactions, MNCs need to define 3Cs. The 3Cs include the following except _______.

Tools MNCs may use to protect financial resources include the following except _____.

What accounting challenges do multinational companies face in international markets?

What approaches can a multinational company use to effectively manage and protect its financial resources around the world?

Which of the following statements is correct?

In the Eurocurrency market, Eurocurrency refers to ______________.

What are your thoughts on the merger of Burger King and Tim Hortons?

Cash pooling has the following benefits except _________.

Should countries that have not converted to IFRS (e.g., the U.S.) follow Canada's step?

The following countries/regions are known for their low taxes except _____.

What are the advantages and disadvantages of different financial sources for MNCs?

How can professional service firms like the Big Four help international businesses?

What challenges do different accounting standards and currencies impose on the accounting function of international business?

Which of the following statements is correct?

A disadvantage of debt financing is:

What is the purpose of analyzing capital structure?

How did Apple reduce its total tax payment?

Which of the following statements is incorrect?

When a company sell shares through private placement, it conducts __________.

What are your thoughts on Apple's tax avoidance practices? Were they "good"?

Globalization

Trade

Foreign Direct Investment

Economic Environment

Political and Legal Environment

Social and Cultural Environment

The Foreign Exchange Market and the International Monetary System

Managing Entry and Exit Decisions

Managing People

Managing Operations

Managing Customers

Managing Sustainability

Filters