Exam 17: Financial Management

Payment terms are usually ________to ________ days.

An internal bank is a multinational firm's financial management tool that actually acts as a bank to coordinate finances among its units.

Many believe that it was Enron's own corporate culture,one based on nothing other than earnings-per-share growth,that led to many of the questionable ethical decisions and ultimately to its demise.

The global financial goals of multinational corporations,such as minimization of the firm's effective global tax burden,are often consistent.

A(n)________ is an asset or a position whose value moves in the equal but opposite direction of the exposure.

A(n)________ refers to a withdrawal document drawn against a company.

Countertrade reduces commercial risk.

A direct exchange of goods of approximately equal value,with no money involved is known as ________.

A financial document drawn against a bank is referred to as a(n)________.

A foreign subsidiary of ABC Company is expecting its local currency to fall in value relative to the U.S.dollar.As a result,ABC is trying to speed up,or ________ its payments to the parent.

The multinational firm must determine for itself the proper balance between three primary financial objectives.Of the following,which is NOT one of these objectives?

A condition that encourages business activity such as barter is:

Cash flow coordination between a corporation's global units so that only one smaller cash transfer must be made is known as ________.

The ________ approach to transnational income taxes all parties,regardless of country of residence.

A ________ is composed of three primary cash flow components: initial expenses and capital outlays,operating cash flows,and terminal cash flows.

Only the firms that actively trade internationally are affected by international financial events,such as exchange rates.

Diversification is one way for a firm to:

General Motors exchanged automobiles for a trainload of strawberries.Control Data swapped a computer for a package of Polish furniture,Hungarian carpet backing,and Russian greeting cards.These are examples of ________.

A(n)________is the document used in international trade to require payment for goods from a buyer.

Daewoo of Korea had,in late 2007 and early 2008,entered into a series of ________.