Archives: Quiz

A budget adjusted to reflect a budget allowance based on actual activity achieved rather than the planned level of activity in the original budget is a: A. static budget. B. rolling budget. C. controllable budget. D. flexible budget. A standard […]

Additional paid-in capital is most likely to appear on the balance sheet of a corporation that: A. has par value stock. B. has no-par value stock. C. has issued stock at different dates. D. has issued stock dividends. If a […]

Which of the following is a true statement regarding the net present value method in capital budgeting? A. it provides the same basic information as the accounting rate of return. B. it calculates the present value of future cash flows. […]

Which of the following is true regarding bond discounts and/or premiums? A. Bond discount is amortized but bond premium is not. B. Bond premium is amortized but bond discount is not. C. Neither bond discount nor premium is amortized. D. […]

During the months of January through June, the following total utility costs were paid at various production volumes: a. Use the high-low method to calculate the cost formula utility costs. b. If the production volume were expected to be 50,000 […]

Cost behavior refers to: A. costs that are both good and bad. B. costs that increase at a quicker rate than others. C. costs that decrease at a quicker rate than others. D. costs that are variable or fixed. E. […]

In an advertiser’s records, a newspaper ad submitted and published this week with the agreement to pay for it next week would: A. decrease assets and decrease expenses. B. increase liabilities and increase expenses. C. decrease assets and increase revenue. […]

To accrue $3,200 of employee salaries for the last week of February, the employer’s journal entry is: The cash budget is especially important to a firm when: A. there is not a lot of confidence in the sales forecast. B. […]

The principle of consistency means that: A. the accounting methods used by an entity never change. B. the same accounting methods are used by all firms in an industry. C. the effect of any change in an accounting method will […]

The Modified Accelerated Cost Recovery System (MACRS) specifies which of the following depreciation methods for land? A. 150% declining-balance. B. Double-declining-balance. C. Straight line. D. Land is not a depreciable asset. Which of the following accounts is part of working […]

XYZ Company incurred the following costs for the month of August when it observed an activity level of 10,000 units. During October, the activity level was 16,000 units, and the total costs incurred were $150,000. a. Calculate the variable costs, […]

A leveraged buyout refers to: A. one firm issues stock to take over another firm. B. one firm trades its stock for the stock of another firm. C. a firm goes heavily into debt in order to obtain the funds […]

As the total volume of activity changes: A. the total of variable costs changes. B. the total of fixed costs changes. C. variable costs per unit change. D. fixed costs per unit stay the same. Envision Company uses activity-based costing […]

The ethical concept of integrity means that an individual must: A. sign a pledge to abide by all laws and regulations. B. report to a supervisor any violation of the code of conduct of her company that is observed. C. […]

Which of the following factors is likely to make a country a more attractive location for international business? A. Totalitarian regimes B. Planned economies C. Government ownership of production methods D. Market-based economic policies If a marketer asks “Is the […]

Decentralization of production is appropriate when: A. the product’s value-to-weight ratio is high. B. location externalities are important. C. the product serves universal needs. D. volatility in important exchange rates is expected. Mercosur originated as a(n) _____ between Brazil and […]

The Smoot-Hawley Act aimed at: A. diverting consumer demand toward foreign products. B. promoting unrestricted free trade. C. limiting global warming. D. avoiding rising unemployment. A(n) _____ distribution channel is one that is difficult for outsiders to access. A. selective […]

According to _____, suffering originates in people’s desires for pleasure. A. Hinduism B. Protestantism C. Buddhism D. Judaism Which of the following is one of the reasons why acquisitions fail? A. There is a clash between the cultures of the […]

The purchasing power parity (PPP) theory tells us that a country with a high inflation rate will: A. export more goods to other countries. B. see depreciation in its currency exchange rate. C. import more goods from other countries. D. […]

Money management decisions attempt to manage a firm’s _____. A. equity capital B. fixed costs C. working capital D. equipment costs Which of the following, in a business setting, is taken to mean benevolent behavior that is the responsibility of […]

Firms pursuing a(n) _____ have a low need for coordination between subunits. A. global standardization strategy B. localization strategy C. transnational strategy D. international strategy The _____ occurs when a resource held in common by all, but owned by no […]

Which of the following statements is true of Web-based EDI systems? A. Cloud-based EDI systems are more expensive than proprietary solutions. B. Small firms will not be able to make use of cloud-based EDI systems. C. Cloud-based systems are much […]

Cross-licensing agreements are increasingly common in the _____ industries. A. transportation B. high-technology C. construction D. consumer durables Which of the following would a follower of the inefficient market school of thought agree with? A. Companies would be better off […]

When the foreign exchange market determines the relative value of a currency, we say that the country is adhering to a _____ regime. A. currency board exchange B. pegged exchange rate C. fixed exchange rate D. floating exchange rate According […]

What is the concept that is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs? A. Translation exposure B. Economic exposure C. Transaction exposure D. Risk exposure When an investor purchases a corporate […]

Financial management in an international business includes three sets of related decisions. Which of these involves making decisions about what activities to finance? A. Investment decisions B. Money management decisions C. Multilateral decisions D. Financing decisions A country is said […]

The norms and values systems that are shared among the employees of a company are referred to as _____. A. processes B. control systems C. incentives D. organizational culture The state can expropriate the profits from innovation through legal means, […]

_____ covers a range of manufacturing technologies designed to reduce setup times for complex equipment. A. ISO 9000 B. TQM C. Lean production D. JIT Which of the following is a major drawback of using Knickerbocker’s theory in explaining FDI? […]

Many firms, of all national origins, increasingly depend on _____ for their competitive advantage. A. globally dispersed production systems B. specific tariffs C. infant industries D. subsidies The need for coordination between subunits is highest in firms pursuing a(n) _____. […]

Historically, financial reports prepared by firms in Germany: A. reveal less information than reports of British or U.S. firms. B. contain detailed information required by individual investors. C. overvalued assets and undervalued liabilities. D. made more public disclosures compared to […]

_____ have/has the most to gain from reductions in agricultural tariffs and subsidies that are a part of the Doha agenda. A. The world’s developed nations B. The world’s poorer nations C. European nations D. The United States Which of […]

Under a pegged exchange rate regime, a country: A. commits itself to converting its domestic currency on demand into another currency at a fixed exchange rate. B. will peg the value of its currency to that of a major currency. […]

Which of the following statements is true? A. Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy. B. Mass communication has cost advantages for firms in consumer […]

The major cost saving associated with JIT systems comes from: A. early delivery of raw materials to production. B. decentralization of manufacturing. C. speeding up inventory turnover. D. reduced spending on CRM activities. Which of the following occurs when traders […]

What is the primary advantage of licensing? A. It helps a firm avoid the development costs associated with opening a foreign market. B. It gives a firm the tight control over manufacturing, marketing, and strategy. C. It helps a firm […]

Which of the following is true of acquisitions? A. It is a time-consuming process and takes a lot of time to execute. B. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant […]

Just-in-time inventory systems: A. are used when procurement is not organized. B. require large warehouses for storage. C. economize on inventory holding costs. D. maintain large buffer for inventory. _____ are reported on a real time basis on many financial […]

The extent to which the place of manufacturing influences product evaluations is known as _____. A. source effects B. country of origin effects C. noise effects D. location effects It has been observed that a product’s production costs decline by […]

The Asian economic crisis and the global financial of 2008-2009 crisis were caused by _____. A. high inflation rates B. excessive debt C. low inflation rates D. a huge trade surplus A country is said to be in balance-of-trade equilibrium […]

Which of the following is a major limitation of the simple Ricardian model of comparative advantage? A. The model ignores the principle of diminishing marginal returns. B. The model recommends excessive governmental intervention in trade. C. The outcome of the […]

Which of the following is true of criminal liability laws? A. Calls for the payment of monetary damages B. They are more extensive in Western Europe than in any other region of the world C. Results in fines or imprisonment […]

Peoples’ right to protest on issues of accountability in public expenditure would be possible in a _____ political set-up. A. dictatorial B. democratic C. totalitarian D. fascist In a representative democracy, citizens periodically elect individuals to represent them. These elected […]

The United Nations Universal Declaration of Human Rights, related to employment, upholds which of the following? A. The requirement for the formation of trade unions. B. A sliding pay scale based upon need. C. Prohibition of trade unions. D. Protection […]

Which of the following is the reason why most economists prefer Heckscher-Ohlin theory to Ricardo’s theory? A. Heckscher-Ohlin stresses on the differences in productivity between nations. B. Ricardo’s theory considers factor endowments to describe national competitiveness. C. Heckscher-Ohlin theory makes […]

Why did many Japanese firms invest in North America and Europe in the 1970s? A. To avoid a highly competitive domestic market. B. To exploit high domestic tariff barriers. C. To create a hedge against unfavorable currency movements. D. To […]

In the United States, the only firms allowed to import cheese are certain trading companies, each of which is allocated the right to import a maximum number of pounds of cheese each year. This is an example of _____. A. […]

Regardless of a firm’s domestic structure, its international division tends to be organized on _____. A. product B. geography C. people D. economy Dumping occurs whenever a firm sells a product: A. for a price that is less than the […]

The marketing mix is comprised of product attributes, distribution strategy, communication strategy, and pricing strategy. The quality of investments declined significantly in the Asian countries during the 1990s. TRUE Volume of investments increased in the Asian countries during the 1990s. […]

In the 1990s, most of the borrowing by the companies who invested in Asian countries had been in local currencies. A firm’s ability to establish a centralized depository that can serve short-term cash needs might be limited by government-imposed restrictions […]

Arbitrage opportunities abound in the foreign exchange markets and they tend to be available for long periods of time. The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks […]