Global Business
Showing posts with label Global Business. Show all posts
Showing posts with label Global Business. Show all posts

What can investors who want to compare one company's profit margin to another company's profit margin utilize?

What can investors who want to compare one company's profit margin to another company's profit margin utilize?




a. The financial statements to conduct a trend analysis
b. The financial statements to calculate the current ratio
c. The financial statements to perform financial ratio analysis
d. The financial statements to calculate the debt ratio




Answer: C

What is the goal of the International Accounting Standards Board (IASB)?

What is the goal of the International Accounting Standards Board (IASB)?



a. To distinguish the financial statements from one country to another
b. To achieve domestically recognized accounting and reporting standards
c. To achieve globally recognized or harmonized standards of accounting and reporting
d. To increase the reporting requirements for multinational corporations (MNCs)





Answer: B

Which of the following best illustrates a function of generally accepted accounting principles?

Which of the following best illustrates a function of generally accepted accounting principles?




a. Supplying domestic Company B with International Accounting Standards Board (IASB) requirements
b. Supplying private Company B with International Accounting Standards Board (IASB) requirements
c. Supplying domestic, publicly traded Company B with guidance in preparing financial statements
d. Supplying private Company B with guidance in preparing financial statements




Answer: D

How do options contracts hedge exchange rate risk?

How do options contracts hedge exchange rate risk?



a. By giving an investor the right to buy or sell a specified amount of currency at a future date at a predetermined price
b. By giving investors the flexibility of future contracts that are market-to-market daily
c. By requiring investors to make small commitments to purchase future contracts
d. By investors buying a currency in future option
e. By allowing an investor the ability to exchange a specified amount of currency at a previously agreed exchange rate





Answer: D

What are two short-term effects of currency movement?

What are two short-term effects of currency movement?



a. Translation risk
b. Accounting risk
c. Economic risk
d. Exchange rate fluctuation
e. Transaction risk
f. Consolidated accounting statements






Answer: E

A successful shoe manufacturer has long been subcontracting production of their shoes to countries such as Vietnam. Which of the following concepts was likely considered when selecting production in this country?

A successful shoe manufacturer has long been subcontracting production of their shoes to countries such as Vietnam. Which of the following concepts was likely considered when selecting production in this country?




a. Political uproar
b. Integrity
c. Contract law
d. Value-to-weight ratio
e. Comparative advantage of labor



Answer: D

What is most likely to happen if a computer company decided to own and operate its own fleet of trucks instead of using shipping companies to deliver its computers?

What is most likely to happen if a computer company decided to own and operate its own fleet of trucks instead of using shipping companies to deliver its computers?



a. The computer company would decrease its expertise in supply chain matters
b. The computer company would produce incentives to make its computers better
c. The computer company would be able to compete in international markets
d. The computer company would be increasing the complexity of its process





Answer: D

Why many companies outsource?

Why many companies outsource?



a. To increase their competition
b. To focus on non-value-added inputs
c. To learn a new business
d. To control the supply chain
e. To take advantage of lower wages




Answer: E

What should a smart company do regarding customer complaints to improve the company's customer service in the future?

What should a smart company do regarding customer complaints to improve the company's customer service in the future?



a. Make customer complaint policies as clear as possible before purchases are made
b. Welcome customer complaints to use as feedback
c. Seek out dissatisfied customers through social media outlets
d. Reward customers who provide positive feedback




Answer: B

Which appropriate set of steps should companies follow when developing new products for overseas markets?

Which appropriate set of steps should companies follow when developing new products for overseas markets?





a. Concept testing, business analysis, market testing, and commercialization
b. Business analysis, evaluation of new product ideas, development, and commercialization
c. Commercialization, business analysis, development, and evaluation of new product ideas
d. Identification of sources of new products, evaluation of new product ideas, development, business analysis, and commercialization
e. Identification of sources of new product ideas, evaluation of new product ideas, concept testing, business analysis, development, market testing, and commercialization



Answer: E

How are standardization strategies defined?

How are standardization strategies defined?




a. Approaches in which global products are developed
b. Approaches that compromise marketing strategies
c. Approaches in which marketing strategies used in international operations will be the same as those being used domestically
d. Approaches in which marketing strategies used in international operations will be different than those used domestically
e. Approaches in which concept testing is delivered to the whole market




Answer: C

Which issues was discussed as a concern during the establishment of North American Free Trade Agreement (NAFTA)?

Which issues was discussed as a concern during the establishment of North American Free Trade Agreement (NAFTA)?




a. The exclusion of Canada from the agreement
b. Uncertainty about whether or not profit for companies would increase
c. The exclusion of Mexico from the agreement
d. A fear that companies would move American manufacturing jobs to Mexico




Answer: D

Which issues are associated with expatriate compensation?

Which issues are associated with expatriate compensation?



a. Collective performance appraisals
b. Language barriers
c. Variability in taxes between countries
d. Major corporation presence





Answer: C
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