the carrying value of a bond is equal to the market price on the date of sale.
The amount of a currency needed to purchase one ounce of gold was referred to as the
gold par value under the gold standard.
to design the product so that it can be manufactured in a cost-effective manner, the firm
needs to build close links between r&d, marketing, and manufacturing.
the benefits of making all or part of a product in-house is minimal when highly
specialized assets are involved.
Cross-border business transactions have become easier for international businesses
because they use a common currency.
the debt to total assets ratio measures the percentage of the total assets provided by
creditors.
historically, most international businesses have been more concerned with training than
with management development.
for a firm, all positions on the efficiency frontier are viable.
technical analysis draws on economic theory to construct sophisticated econometric
models for predicting exchange rate movements.
foreign bonds are sold within the borrowers country and are denominated in the
currency of the country in which they are issued.
human rights activists see wto rules as outlawing the ability of nations to stop imports
from countries where child labor is used or working conditions are hazardous.
the firm that sources from independent suppliers has fewer subunits to control.
the contractual interest rate is always equal to the market rate of interest on the date that
bonds are issued.
the minimum efficient scale of production is high when fixed costs are low.
the need for coordination between units is greatest in firms pursuing a localization
strategy.
which of the following theories stress the role of luck, entrepreneurship, and innovation
in the production and export of a good or service by the firms in a country?
a.product life-cycle theory
b.ricardos theory
c.theory of comparative advantage
d.new trade theory
the following totals for the month of april were taken from the payroll register of metz
company.
the entry to record the accrual of federal unemployment tax would include a
a.credit to federal unemployment taxes payable for $160
b.credit to federal unemployment taxes expense for $160
c.credit to payroll tax expense for $160
d.debit to federal unemployment taxes payable for $160
which among the following should be done in order to reduce bias in the performance
appraisal process for expatriates?
a.more weight should be given to an off-site managers appraisal than to an on-site
managers appraisal
b.the on-site manager should be of a different nationality as the expatriate manager
c.home-office managers should be consulted before an on-site manager completes a
formal termination evaluation
d.a former expatriate who served in the same location as a current expatriate should not
be allowed to participate in the appraisal
on january 1, thompson corporation issued $4,000,000, 14%, 5-year bonds with interest
payable on december 31. the bonds sold for $4,288,384. the market rate of interest for
these bonds was 12%. on the first interest date, using the effective-interest method, the
debit entry to bond interest expense is for
a.$480,000
b.$502,324
c.$514,606
d.$560,000
in russia in the chaotic period following the collapse of communism, an outdated legal
system, coupled with a weak police force and judicial system, allowed the russian mafia
to demand “protection money” from business owners. any business owner who rebelled
had to face violent retribution. this violation of property rights exemplifies ____.
a.private action
b.copyright violation
c.infrastructural failure
d.public liability
firms entering markets where there are no incumbent competitors to be acquired should
choose:
a.greenfield investments
b.joint ventures
c.acquisitions
d.takeovers
it has been suggested that learning effects are important only during the start-up period
of a new process and that they cease after two or three years. any decline in the
experience curve after such a point is due to:
a.reduction in fixed costs
b.higher depreciation costs
c.economies of scale
d.obsolescence
a legal document that indicates the name of the issuer, the face value of the bond and
such other data is called
a.a bond certificate
b.a bond debenture
c.trading on the equity
d.a convertible bond
which of the following makes being dependent on one location particularly risky?
a.governmental intervention in exchange rates
b.floating exchange rates
c.fixed exchange rates
d.preferential treatment of domestic industries
an advantage of buying component parts, or even an entire product, from independent
suppliers is that _____.
a.it can make planning, coordination, and scheduling of adjacent processes easier for
the firm
b.the firm can maintain its flexibility by switching orders according to circumstances
c.the firm will be able to maintain strict control over its proprietary technology
d.the firm will have access to superior quality raw materials and will deliver high
quality products
in practice, the dual-hierarchy in a global matrix structure:
a.lessens all forms of conflict
b.makes it easy to ascertain accountability
c.results in extremely quick decision making
d.can lead to perpetual power struggles
a(n) _____ is valuable because it can be used as a nonbureaucratic conduit for
information flows within a multinational enterprise.
a.liaison network
b.matrix structure
c.organizational structure
d.knowledge network
a country has an absolute advantage in the production of a product when it ____.
a.has the capability to produce the product within its boundaries
b.is more efficient than any other country in producing it
c.has the largest domestic demand for the product
d.has access to the raw materials needed to produce the product
central to the concept of economies of scale is the idea that the best way to achieve high
efficiency, and hence low unit costs, is through the _____.
a.customization of products for each individual market
b.mass production of a standardized output
c.production of goods that are different from each other
d.production of small volumes of high-quality products
Do you think businesses can influence government policies? Explain your answer.
discuss mendenhall and oddous assertion that an executive who performs well in a
domestic setting may not adapt to a different cultural setting.
explain the relationship between first-mover disadvantages and pioneering costs.
moon company issued $300,000, 10%, 5-year bonds on january 1, 2012, at 106. interest
is payable annually on january moon uses the effective-interest method of amortization
and has a calendar year end and the bonds were issued for an effective interest rate of
8%.
instructions
prepare all journal entries made in 2012 related to the bond issue.
discuss the three advantages of acquiring an enterprise in a target market.