Question 1

What are the disadvantages of transfer pricing?

Accepted Answer

Since the pricing taking place is betwee

Question 2

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

Accepted Answer

Multinational firms are choosing to rais

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) The government of the host country in which the subsidiary is located makes financing or investment decisions for the organization, taking advantage of local knowledge and moving quickly to respond to opportunities or uncertainties. 
B) A decentralized financial organization structure enables the firm to gain economies of scale for investment and borrowing activities that can reduce transaction costs and provide the firm with the most competitive pricing. 
C) Subsidiaries or regions make financing or investment decisions for their region, taking advantage of local knowledge and moving quickly to respond to opportunities or uncertainties. 
D) The financial institutions which fund the organization set guidelines for the headquarters as well as the subsidiaries to follow, pool funds, leverage the benefits of scale for investment and borrowing, and hire knowledgeable staff to make the most effective, firm-wide decisions. 
E) All finance decisions are performed at headquarters, which sets guidelines for subsidiaries to follow, pools funds, leverages the benefits of scale for investment and borrowing, and hires knowledgeable staff to make the most effective, firm-wide decisions. 
A) The government of the host country in which the subsidiary is located makes financing or investment decisions for the organization, taking advantage of local knowledge and moving quickly to respond to opportunities or uncertainties. 
B) A decentralized financial organization structure enables the firm to gain economies of scale for investment and borrowing activities that can reduce transaction costs and provide the firm with the most competitive pricing. 
C) Subsidiaries or regions make financing or investment decisions for their region, taking advantage of local knowledge and moving quickly to respond to opportunities or uncertainties. 
D) The financial institutions which fund the organization set guidelines for the headquarters as well as the subsidiaries to follow, pool funds, leverage the benefits of scale for investment and borrowing, and hire knowledgeable staff to make the most effective, firm-wide decisions. 
E) All finance decisions are performed at headquarters, which sets guidelines for subsidiaries to follow, pools funds, leverages the benefits of scale for investment and borrowing, and hires knowledgeable staff to make the most effective, firm-wide decisions.

Question 5

The _____ is the major entity proposing international standards of accounting and was formerly known as the International Accounting Standards Committee (IASC).

Accepted Answer

A) International Public Sector Accounting Standards (IPSAS) Board 
B) US Financial Accounting Standards Board (FAS
B)  
C) International Accounting Standards Board (IAS
B)  
D) Federal Reserve Bank (FRB
A)  of America 
E) Australian Accounting Standards Board (AAS
B)  
A) International Public Sector Accounting Standards (IPSAS) Board 
B) US Financial Accounting Standards Board (FAS
B)  
C) International Accounting Standards Board (IAS
B)  
D) Federal Reserve Bank (FRB
A)  of America 
E) Australian Accounting Standards Board (AAS
B)

Question 6

Which of the following statements holds true for forward exchange rates?

Accepted Answer

A) It refers to the weighted average of a basket of foreign currencies. 
B) It refers to the rate at which two parties agree to exchange currency and execute a deal that takes place immediately. 
C) It refers to the rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. 
D) It refers to the rate at which two parties agree to exchange currency and execute a deal at some specific point in the future, usually 30 days, 60 days, 90 days, or 180 days in the future. 
E) It refers to a form of exchange traded derivative whose underlying value is the rate on various financial interest rates, including treasury bills and bonds. 
A) It refers to the weighted average of a basket of foreign currencies. 
B) It refers to the rate at which two parties agree to exchange currency and execute a deal that takes place immediately. 
C) It refers to the rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. 
D) It refers to the rate at which two parties agree to exchange currency and execute a deal at some specific point in the future, usually 30 days, 60 days, 90 days, or 180 days in the future. 
E) It refers to a form of exchange traded derivative whose underlying value is the rate on various financial interest rates, including treasury bills and bonds.

Question 7

Some governments court foreign borrowers by offering low-interest loans or by offering lower corporate income tax to attract investment in their countries.

Accepted Answer

A) True 
 B)False

Question 8

_____ refers to the pricing that takes place between entities owned by the same parent firm where one subsidiary (or subunit of the company) charges another subsidiary (or subunit) for a product or service supplied to that subsidiary.

Accepted Answer

A) Competition-based pricing 
B) Limit pricing 
C) Penetration pricing 
D) Premium pricing 
E) Transfer pricing 
A) Competition-based pricing 
B) Limit pricing 
C) Penetration pricing 
D) Premium pricing 
E) Transfer pricing

Question 9

The regional CFOs play an important role in the functioning of an organization with a decentralized structure.Explain.

Accepted Answer

If a company uses a decentralized financ

Question 10

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

Accepted Answer

A) It refers to the weighted average of a basket of foreign currencies. 
B) It refers to the rate at which two parties agree to exchange currency and execute a deal that takes place immediately. 
C) It refers to the rate that determines the pay-offs in a financial contract and that is outside the control of the parties to the contract. 
D) It refers to the rate at which two parties agree to exchange currency and execute a deal at some specific point in the future, usually 30 days, 60 days, 90 days, or 180 days in the future. 
E) It refers to the exchange rate based on the rate in place when the assets and liability were originally acquired or purchased. 
A) It refers to the weighted average of a basket of foreign currencies. 
B) It refers to the rate at which two parties agree to exchange currency and execute a deal that takes place immediately. 
C) It refers to the rate that determines the pay-offs in a financial contract and that is outside the control of the parties to the contract. 
D) It refers to the rate at which two parties agree to exchange currency and execute a deal at some specific point in the future, usually 30 days, 60 days, 90 days, or 180 days in the future. 
E) It refers to the exchange rate based on the rate in place when the assets and liability were originally acquired or purchased.

Question 11

Despite the costs associated with a forward contract, companies often prefer it to protect themselves against a potential larger downside loss.

Accepted Answer

A) True 
 B)False

Question 12

Most of the developed nations require consolidated statements so that losses can't be hidden under an unconsolidated subsidiary.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements holds true for international financial reporting standards (IFRS)?

Accepted Answer

A) It refers to a set of accounting standards issued by theInternational Public Sector Accounting Standards (IPSAS) Board for use by public sector entities throughout the world to prepare their financial statements. 
B) It refers to the standards that are developed by the International Accounting Standards Board (IAS
B)  for reporting company financial results and that are followed by over one hundred nations throughout the world. 
C) It refers to the set of standards developed by the European Union for reporting any discrepancies in financial reporting by non-EU firms. 
D) It refers to the standards that are developed by the International Monetary Fund to assess the financial strength and credit worthiness of countries throughout the world. 
E) It refers to the standards that are developed by the US Financial Accounting Standards Board (FAS
B)  for reporting company financial results and that all US companies or companies operating in the US must follow. 
A) It refers to a set of accounting standards issued by theInternational Public Sector Accounting Standards (IPSAS) Board for use by public sector entities throughout the world to prepare their financial statements. 
B) It refers to the standards that are developed by the International Accounting Standards Board (IAS
B)  for reporting company financial results and that are followed by over one hundred nations throughout the world. 
C) It refers to the set of standards developed by the European Union for reporting any discrepancies in financial reporting by non-EU firms. 
D) It refers to the standards that are developed by the International Monetary Fund to assess the financial strength and credit worthiness of countries throughout the world. 
E) It refers to the standards that are developed by the US Financial Accounting Standards Board (FAS
B)  for reporting company financial results and that all US companies or companies operating in the US must follow.

Question 14

Companies face currency risk because they typically price their products and services in the local currency of each country in which they operate.

Accepted Answer

A) True 
 B)False

Question 15

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:

Accepted Answer

A) debt financing. 
B) capital budgeting. 
C) equity financing. 
D) trade credit. 
E) loan fronting. 
A) debt financing. 
B) capital budgeting. 
C) equity financing. 
D) trade credit. 
E) loan fronting.

Question 16

Most IASB statements provide three acceptable alternatives since it is difficult to get an agreement while formulating the international reporting standards.

Accepted Answer

A) True 
 B)False

Question 17

One alternative investment strategy approved by the Sharia is _____ that allows profit and loss sharing.

Accepted Answer

The answer of One alternative investment strategy approved by the...

Question 18

Which of the following statements holds true for a consolidated financial statement?

Accepted Answer

A) It is a part of a nation's balance of payments that includes purchases and sales of assets, such as stocks, bonds, and land. 
B) It demonstrates that firms-that are legally separate from the parent and each other-are economically independent too. 
C) It is a statement part of a nation's balance of payments which includes the value of all goods and services imported and exported, as well as the payment and receipt of dividends and interest. 
D) It is a written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. 
E) It brings together all the financial statements of a parent and its subsidiaries into a single financial statement. 
A) It is a part of a nation's balance of payments that includes purchases and sales of assets, such as stocks, bonds, and land. 
B) It demonstrates that firms-that are legally separate from the parent and each other-are economically independent too. 
C) It is a statement part of a nation's balance of payments which includes the value of all goods and services imported and exported, as well as the payment and receipt of dividends and interest. 
D) It is a written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. 
E) It brings together all the financial statements of a parent and its subsidiaries into a single financial statement.

Question 19

How is Indonesia making itself attractive to foreign investors?

Accepted Answer

F1F1F1S1F1F1F10It's touting its young p

Question 20

The _____ is the most widely used currency-translation method.

Accepted Answer

A) Hedging process 
B) current-rate method 
C) Monte Carlo method 
D) temporal method 
E) Markov process 
A) Hedging process 
B) current-rate method 
C) Monte Carlo method 
D) temporal method 
E) Markov process

What are the disadvantages of transfer pricing?

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

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 decentralized financial organization structure?

The _____ is the major entity proposing international standards of accounting and was formerly known as the International Accounting Standards Committee (IASC).

Which of the following statements holds true for forward exchange rates?

Some governments court foreign borrowers by offering low-interest loans or by offering lower corporate income tax to attract investment in their countries.

_____ refers to the pricing that takes place between entities owned by the same parent firm where one subsidiary (or subunit of the company) charges another subsidiary (or subunit) for a product or service supplied to that subsidiary.

The regional CFOs play an important role in the functioning of an organization with a decentralized structure.Explain.

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

Despite the costs associated with a forward contract, companies often prefer it to protect themselves against a potential larger downside loss.

Most of the developed nations require consolidated statements so that losses can't be hidden under an unconsolidated subsidiary.

Which of the following statements holds true for international financial reporting standards (IFRS)?

Companies face currency risk because they typically price their products and services in the local currency of each country in which they operate.

Most IASB statements provide three acceptable alternatives since it is difficult to get an agreement while formulating the international reporting standards.

One alternative investment strategy approved by the Sharia is _____ that allows profit and loss sharing.

Which of the following statements holds true for a consolidated financial statement?

How is Indonesia making itself attractive to foreign investors?

The _____ is the most widely used currency-translation method.

Introduction

International Trade and Foreign Direct Investment

Culture and Business

World Economies

Global and Regional Economic Cooperation and Integration

International Monetary System

Foreign Exchange and the Global Capital Markets

International Expansion and Global Market Opportunity Assessment

Exporting, Importing, and Global Sourcing

Strategy and International Business

Global Entrepreneurship and Intrapreneurship

Winning Through Effective, Global Talent Management

Harnessing the Engine of Global Innovation

Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management

Filters

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

What are the disadvantages of transfer pricing?

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

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 decentralized financial organization structure?

The _____ is the major entity proposing international standards of accounting and was formerly known as the International Accounting Standards Committee (IASC).

Which of the following statements holds true for forward exchange rates?

Some governments court foreign borrowers by offering low-interest loans or by offering lower corporate income tax to attract investment in their countries.

_____ refers to the pricing that takes place between entities owned by the same parent firm where one subsidiary (or subunit of the company) charges another subsidiary (or subunit) for a product or service supplied to that subsidiary.

The regional CFOs play an important role in the functioning of an organization with a decentralized structure.Explain.

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

Despite the costs associated with a forward contract, companies often prefer it to protect themselves against a potential larger downside loss.

Most of the developed nations require consolidated statements so that losses can't be hidden under an unconsolidated subsidiary.

Which of the following statements holds true for international financial reporting standards (IFRS)?

Companies face currency risk because they typically price their products and services in the local currency of each country in which they operate.

Most IASB statements provide three acceptable alternatives since it is difficult to get an agreement while formulating the international reporting standards.

One alternative investment strategy approved by the Sharia is _____ that allows profit and loss sharing.

Which of the following statements holds true for a consolidated financial statement?

How is Indonesia making itself attractive to foreign investors?

The _____ is the most widely used currency-translation method.

Introduction

International Trade and Foreign Direct Investment

Culture and Business

World Economies

Global and Regional Economic Cooperation and Integration

International Monetary System

Foreign Exchange and the Global Capital Markets

International Expansion and Global Market Opportunity Assessment

Exporting, Importing, and Global Sourcing

Strategy and International Business

Global Entrepreneurship and Intrapreneurship

Winning Through Effective, Global Talent Management

Harnessing the Engine of Global Innovation

Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management

Filters