Question 1

Research on international firms shows a lack of association between the proportion of outside directors and firm performance.

Accepted Answer

A) True 
 B)False  True

Question 2

Sarbanes-Oxley Act of 2002 requires management to issue a yearly report with their assessment of the effectiveness of internal controls.

Accepted Answer

A) True 
 B)False  False

Question 3

For IT, economies of scale result in

Accepted Answer

A)  worldwide innovation. 
B)  local differentiation. 
C)  global integration. 
D)  lateral relations. 
A)  worldwide innovation. 
B)  local differentiation. 
C)  global integration. 
D)  lateral relations. C

Question 4

The COSO monitoring component

Accepted Answer

A)  assesses the quality of the system's performance over time 
B)  assures that no fraud will occur 
C)  sets the tone of the organization 
D)  is required by FASB 
A)  assesses the quality of the system's performance over time 
B)  assures that no fraud will occur 
C)  sets the tone of the organization 
D)  is required by FASB

Question 5

The German Scoreboard has become a useful measurement tool internationally for corporate governance.

Accepted Answer

A) True 
 B)False

Question 6

The Scoreboard for German Corporate Governance

Accepted Answer

A)  is used only in Germany 
B)  rates the quality of governance 
C)  reflects a civil law approach 
D)  is based on 1 to 5 quality ratings 
A)  is used only in Germany 
B)  rates the quality of governance 
C)  reflects a civil law approach 
D)  is based on 1 to 5 quality ratings

Question 7

Which of the following reflects information flows of a global innovator?

Accepted Answer

A)  High outflow of knowledge from the local subsidiary to the rest of the corporation and high inflow of knowledge from the rest of the corporation to the local subsidiary. 
B)  High outflows and low inflows. 
C)  Low outflows and high inflows. 
D)  High outflows and high inflows. 
A)  High outflow of knowledge from the local subsidiary to the rest of the corporation and high inflow of knowledge from the rest of the corporation to the local subsidiary. 
B)  High outflows and low inflows. 
C)  Low outflows and high inflows. 
D)  High outflows and high inflows.

Question 8

If a subsidiary in a global company is considered to be an integrated player,

Accepted Answer

A)  it tends to receive but not share knowledge. 
B)  its information flows would be reciprocal. 
C)  it is probably organized around geographic lines of business. 
D)  it would be multidomestic rather than transnational. 
A)  it tends to receive but not share knowledge. 
B)  its information flows would be reciprocal. 
C)  it is probably organized around geographic lines of business. 
D)  it would be multidomestic rather than transnational.

Question 9

Organizational culture is part of the

Accepted Answer

A)  structural mechanisms of control. 
B)  informal control mechanisms. 
C)  centralization vs. decentralization dilemma. 
D)  organizational structure dimension. 
A)  structural mechanisms of control. 
B)  informal control mechanisms. 
C)  centralization vs. decentralization dilemma. 
D)  organizational structure dimension.

Question 10

COSO characteristics of internal control include
I..effectiveness and efficiency of operations
II..reliability of financial reporting

Accepted Answer

A)  only for I 
B)  only for II 
C)  neither I or II 
D)  both I and II 
A)  only for I 
B)  only for II 
C)  neither I or II 
D)  both I and II

Question 11

The Sarbanes-Oxley Act of 2002

Accepted Answer

A)  is not required for foreign firms registered on US exchanges. 
B)  prohibits real time financial statements on the Internet. 
C)  is also required for IFRS 
D)  requires annual internal control report that is assessed by an independent auditor. 
A)  is not required for foreign firms registered on US exchanges. 
B)  prohibits real time financial statements on the Internet. 
C)  is also required for IFRS 
D)  requires annual internal control report that is assessed by an independent auditor.

Question 12

The external takeover market is an effective control mechanism
I..in the US
II..in the UK
III. throughout the world

Accepted Answer

A)  only for I 
B)  only for II 
C)  either I or II 
D)  III is the best answer 
A)  only for I 
B)  only for II 
C)  either I or II 
D)  III is the best answer

Question 13

Which of the following is not consistent with establishing a product line focus in the MNEs organizational structure?

Accepted Answer

A)  The product line is wide. 
B)  Products are subject to rapid technological change. 
C)  Production and logistics need to be coordinated. 
D)  Country and regional expertise is of prime importance. 
A)  The product line is wide. 
B)  Products are subject to rapid technological change. 
C)  Production and logistics need to be coordinated. 
D)  Country and regional expertise is of prime importance.

Question 14

Shareholders

Accepted Answer

A)  directly control MNE operations 
B)  vote to hire and fire management 
C)  receive dividends and management appoints the board of directors 
D)  vote for board of directors who hire and fire management 
A)  directly control MNE operations 
B)  vote to hire and fire management 
C)  receive dividends and management appoints the board of directors 
D)  vote for board of directors who hire and fire management

Question 15

To be globally competitive, MNEs need an information system that provides a significant flow of information
I..from parent to affiliate
II..from affiliate to parent
III. between affiliates

Accepted Answer

A)  only I 
B)  only II 
C)  either I or II 
D)  I, II and III 
A)  only I 
B)  only II 
C)  either I or II 
D)  I, II and III

Question 16

In practice, control is shifting form the formal to the more informal ways of coordinating activities.

Accepted Answer

A) True 
 B)False

Question 17

The problem with defining international business structures with centralization versus decentralization is that the very terms connote a mutually exclusive situation.

Accepted Answer

A) True 
 B)False

Question 18

A centralized, globally scaled strategy is symbolic of a

Accepted Answer

A)  multidomestic strategy. 
B)  global strategy. 
C)  transnational strategy. 
D)  geocentric strategy. 
A)  multidomestic strategy. 
B)  global strategy. 
C)  transnational strategy. 
D)  geocentric strategy.

Question 19

A multidomestic strategy

Accepted Answer

A)  allows each subsidiary abroad to operate relatively independently of other subsidiaries. 
B)  occurs when an MNE pits itself against competitors on a global basis. 
C)  results in highly centralized decision-making. 
D)  does not allow products to vary from one market to another. 
A)  allows each subsidiary abroad to operate relatively independently of other subsidiaries. 
B)  occurs when an MNE pits itself against competitors on a global basis. 
C)  results in highly centralized decision-making. 
D)  does not allow products to vary from one market to another.

Question 20

A grid/matrix organization would be most common in a domestic structure.

Accepted Answer

A) True 
 B)False

Research on international firms shows a lack of association between the proportion of outside directors and firm performance.

Sarbanes-Oxley Act of 2002 requires management to issue a yearly report with their assessment of the effectiveness of internal controls.

For IT, economies of scale result in

The COSO monitoring component

The German Scoreboard has become a useful measurement tool internationally for corporate governance.

The Scoreboard for German Corporate Governance

Which of the following reflects information flows of a global innovator?

If a subsidiary in a global company is considered to be an integrated player,

Organizational culture is part of the

COSO characteristics of internal control include I..effectiveness and efficiency of operations II..reliability of financial reporting

The Sarbanes-Oxley Act of 2002

The external takeover market is an effective control mechanism I..in the US II..in the UK III. throughout the world

Which of the following is not consistent with establishing a product line focus in the MNEs organizational structure?

Shareholders

To be globally competitive, MNEs need an information system that provides a significant flow of information I..from parent to affiliate II..from affiliate to parent III. between affiliates

In practice, control is shifting form the formal to the more informal ways of coordinating activities.

The problem with defining international business structures with centralization versus decentralization is that the very terms connote a mutually exclusive situation.

A centralized, globally scaled strategy is symbolic of a

A multidomestic strategy

A grid/matrix organization would be most common in a domestic structure.

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

International Segment Reporting

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Auditing Issues

International Taxation Issues

Filters

Exam 12: Corporate Governance and Control of Global Operations

Research on international firms shows a lack of association between the proportion of outside directors and firm performance.

Sarbanes-Oxley Act of 2002 requires management to issue a yearly report with their assessment of the effectiveness of internal controls.

For IT, economies of scale result in

The COSO monitoring component

The German Scoreboard has become a useful measurement tool internationally for corporate governance.

The Scoreboard for German Corporate Governance

Which of the following reflects information flows of a global innovator?

If a subsidiary in a global company is considered to be an integrated player,

Organizational culture is part of the

COSO characteristics of internal control include I..effectiveness and efficiency of operations II..reliability of financial reporting

The Sarbanes-Oxley Act of 2002

The external takeover market is an effective control mechanism I..in the US II..in the UK III. throughout the world

Which of the following is not consistent with establishing a product line focus in the MNEs organizational structure?

Shareholders

To be globally competitive, MNEs need an information system that provides a significant flow of information I..from parent to affiliate II..from affiliate to parent III. between affiliates

In practice, control is shifting form the formal to the more informal ways of coordinating activities.

The problem with defining international business structures with centralization versus decentralization is that the very terms connote a mutually exclusive situation.

A centralized, globally scaled strategy is symbolic of a

A multidomestic strategy

A grid/matrix organization would be most common in a domestic structure.

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

International Segment Reporting

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Auditing Issues

International Taxation Issues

Filters