The budget is the main instrument of financial control in an organization.
the costs and risks associated with doing business in a foreign country are typically high
in an economically advanced and politically stable democratic nation.
lack of knowledge is one of the biggest impediments to a company becoming a
successful exporter.
just-in-time systems are used to economize on inventory holding costs by having
materials arrive at a manufacturing plant just in time to enter the production process and
not before.
the koran speaks disapprovingly of free enterprise.
according to the new trade theory, firms that establish a first-mover advantage with
regard to the production of a particular new product may subsequently dominate global
trade in that product.
cultural myopia refers to a firms failure to understand host-country cultural differences
that require different approaches to marketing and management.
the face value is the amount of principal and interest due at the maturity date.
a _____ states that the bank will pay a specified sum of money to a beneficiary,
normally the exporter, on presentation of particular, specified documents.
a.bill of exchange
b.bill of lading
c.letter of credit
d.bank statement
which of the following is not a current liability on december 31, 2012?
a.a note payable due december 31, 2013
b.an accounts payable due january 31, 2013
c.a lawsuit judgment to be decided on january 10, 2013
d.accrued salaries payable from 2012
wynne company issued $600,000 of 10%, 5-year bonds at 108. interest is paid annually,
and the effective interest method is used for amortization. assume that the market rate
for similar investments is 8%. the bonds are issued on the date of the bonds.
a.what amount was received for the bonds?
b.how much interest is paid each interest period?
c.what is the premium amortization for the first interest period?
d.how much bond interest expense is recorded on the first interest date?
e.what is the carrying value of the bonds after the first interest date?
which of the following statements about franchising is true?
a.it guarantees consistent product quality
b.it tends to involve more short-term commitments than licensing
c.it is a specialized form of licensing
d.it is employed primarily by manufacturing firms
bonds that are subject to retirement at a stated dollar amount prior to maturity at the
option of the issuer are called
a.callable bonds
b.early retirement bonds
c.options
d.debentures
when a country runs a current account deficit, what happens to the money that flows to
other countries?
a.it is used to buy assets in the deficit country
b.it is put into the receiving countrys infrastructure
c.it is converted to securities
d.it is used to pay for social programs in the receiving country
which of the following is a reason why the global capital market is increasingly
becoming speculative?
a.a global market reduces the liquidity of investments and increases the chances of
incurring losses
b.investments in the global capital market are faced with a lack of quality information
c.investments in the global capital market are not conducive to diversification
d.the cost of capital is more in a global market and this increases the level of risk
associated with it
Which of the following is a disadvantage of comparing managers in different countries
only on the basis of return on investment?
A.The managers are not responsible for increasing the ROI of an organization.
B.Managerial actions do not have a significant impact on firms profitability.
C.Return on investment is not a valid indicator of organizational profitability.
D.Environmental factors also contribute to ROI of firms and these factors differ.
the current portion of long-term debt should
a.be paid immediately
b.be reclassified as a current liability
c.be classified as a long-term liability
d.not be separated from the long-term portion of debt
many firms pursuing a(n) ____ pricing strategy on an international scale will price low
worldwide in attempting to build global sales volume as rapidly as possible, even if this
means taking large losses initially.
a.multipoint
b.experience curve
c.predatory
d.competitive
Which of the following is true about the International Monetary Fund?
A.It is primarily responsible for policing the world trading system.
B.It is seen as the lender of last resort to nation-states whose economies are in turmoil.
C.It is responsible for establishing multinational treaties to govern the global business
system.
D.It was established to formulate a coordinated policy response to financial crises in
developing nations.
morgan company does not ring up sales taxes separately on the cash register. total
receipts for february amounted to $19,080. if the sales tax rate is 6%, what amount must
be remitted to the state for februarys sales taxes?
a.$1,145
b.$1,080
c.$1,076
d.it cannot be determined
which of the following statements best describes the behavior over time of the
components of equal mortgage payments?
a.the proportion of interest expense to payment of principal remains the same
b.interest expense increases and payment of principal decreases
c.payment of principal increases and interest expense decreases
d. both payment of principal and interest expense decrease
which of the following acts allows americans to sue foreign firms that use property in
cuba confiscated from them after the 1959 revolution?
a.damato act
b.smoot-hawley act
c.helms-burton act
d.antidumping act
_____ is the collective term for the legal rights relating to the use to which a resource is
put and over the use made of any income that may be derived from that resource.
a.trade rights
b.property rights
c.positive rights
d.common rights
the following partial amortization schedule is available for courtney company who sold
$300,000, five-year, 10% bonds on january 1, 2012 for $312,000 and uses annual
straight-line amortization.
which of the following amounts should be shown in cell (i)?
a.$31,200
b.$32,400
c.$30,000
d.$ 6,000
thayer company purchased a building on january 2 by signing a long-term $4,200,000
mortgage with monthly payments of $38,500. the mortgage carries an interest rate of 10
percent. the entry to record the first monthly payment will include a
a.debit to the cash account for $38,500
b.credit to the cash account for $35,000
c.debit to the interest expense account for $35,000
d.credit to the mortgage payable account for $38,500
what are the main uses of foreign exchange markets for international business?
how can a borrower hedge against unpredictable movements in exchange rates?
Describe importance of accounting information in business.
define licensing agreements. what are the advantages of this mode of international
expansion?
what is product liability?
how does a global capital market, as compared to a purely domestic market, benefit
investors?