Question 1

What term is used to describe a unit of a multinational corporation that takes a leading role in a particular area?

Accepted Answer

A) Implementer 
B) Global innovator 
C) Local innovator 
D) Integrated player 
A) Implementer 
B) Global innovator 
C) Local innovator 
D) Integrated player

Question 2

How is the payback period used in capital budgeting?

Accepted Answer

A) As a measure of a project's risk 
B) To determine the amount of funds that will be required in the future 
C) To measure the relationship between the project's return and the company's cost of capital 
D) None of the above 
A) As a measure of a project's risk 
B) To determine the amount of funds that will be required in the future 
C) To measure the relationship between the project's return and the company's cost of capital 
D) None of the above

Question 3

A unit of a multinational corporation that creates little or no knowledge but rather uses the ideas and processes developed by other units is referred to as a(n):

Accepted Answer

A) implementer. 
B) local innovator. 
C) integrated player. 
D) team player. 
A) implementer. 
B) local innovator. 
C) integrated player. 
D) team player.

Question 4

A plan for next year expressed in quantitative terms is referred to as:

Accepted Answer

A) strategy. 
B) capital budget. 
C) operating budget. 
D) management control system. 
A) strategy. 
B) capital budget. 
C) operating budget. 
D) management control system.

Question 5

Where would a divisional manager look to find the targets she is expected to reach in the next fiscal year?

Accepted Answer

A) Strategic plan 
B) Capital budget 
C) Operating budget 
D) Strategic formulation 
A) Strategic plan 
B) Capital budget 
C) Operating budget 
D) Strategic formulation

Question 6

Which of the following is NOT a perspective under the balanced scorecard approach?

Accepted Answer

A) Parent company perspective 
B) Internal business perspective 
C) Customer perspective 
D) Financial perspective 
A) Parent company perspective 
B) Internal business perspective 
C) Customer perspective 
D) Financial perspective

Question 7

Which of the following factors should be evaluated during the internal analysis phase of strategic formulation?

Accepted Answer

A) Manufacturing capacity 
B) New government regulations pending 
C) Customer demand 
D) Strength of the competition 
A) Manufacturing capacity 
B) New government regulations pending 
C) Customer demand 
D) Strength of the competition

Question 8

Which of the following would be characteristic of a bureaucratic control system?

Accepted Answer

A) Goals are more likely to be achieved by local managers 
B) Financial targets are more explicitly specified throughout an organization 
C) Meetings between parent and subsidiary managers are scheduled when needed rather than on a specific schedule 
D) Budgets play a minor role in the management control system 
A) Goals are more likely to be achieved by local managers 
B) Financial targets are more explicitly specified throughout an organization 
C) Meetings between parent and subsidiary managers are scheduled when needed rather than on a specific schedule 
D) Budgets play a minor role in the management control system

Question 9

What is the limitation of using the net present value for evaluating capital investment alternatives?

Accepted Answer

A) Ignores the time value of money 
B) Does not consider cash flows 
C) Cannot be used to compare projects of different size 
D) All of the above are limitations of the net present value method. 
A) Ignores the time value of money 
B) Does not consider cash flows 
C) Cannot be used to compare projects of different size 
D) All of the above are limitations of the net present value method.

Question 10

What is the likely outcome of using performance measures that subsidiary managers perceive to be unachievable?

Accepted Answer

A) Frustrated managers 
B) Diligent attention to operational efficiency 
C) Success 
D) Optimal decision-making 
A) Frustrated managers 
B) Diligent attention to operational efficiency 
C) Success 
D) Optimal decision-making

Question 11

The process of management control by which managers influence others members of the organization to achieve organization's goals is known as:

Accepted Answer

A) performance evaluation. 
B) operational planning. 
C) strategy implementation. 
D) capital budgeting. 
A) performance evaluation. 
B) operational planning. 
C) strategy implementation. 
D) capital budgeting.

What term is used to describe a unit of a multinational corporation that takes a leading role in a particular area?

How is the payback period used in capital budgeting?

A unit of a multinational corporation that creates little or no knowledge but rather uses the ideas and processes developed by other units is referred to as a(n):

A plan for next year expressed in quantitative terms is referred to as:

Where would a divisional manager look to find the targets she is expected to reach in the next fiscal year?

Which of the following is NOT a perspective under the balanced scorecard approach?

Which of the following factors should be evaluated during the internal analysis phase of strategic formulation?

Which of the following would be characteristic of a bureaucratic control system?

What is the limitation of using the net present value for evaluating capital investment alternatives?

What is the likely outcome of using performance measures that subsidiary managers perceive to be unachievable?

The process of management control by which managers influence others members of the organization to achieve organization's goals is known as:

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

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Exam 13: Strategic Accounting Issues in Multinational Corporations

What term is used to describe a unit of a multinational corporation that takes a leading role in a particular area?

How is the payback period used in capital budgeting?

A unit of a multinational corporation that creates little or no knowledge but rather uses the ideas and processes developed by other units is referred to as a(n):

A plan for next year expressed in quantitative terms is referred to as:

Where would a divisional manager look to find the targets she is expected to reach in the next fiscal year?

Which of the following is NOT a perspective under the balanced scorecard approach?

Which of the following factors should be evaluated during the internal analysis phase of strategic formulation?

Which of the following would be characteristic of a bureaucratic control system?

What is the limitation of using the net present value for evaluating capital investment alternatives?

What is the likely outcome of using performance measures that subsidiary managers perceive to be unachievable?

The process of management control by which managers influence others members of the organization to achieve organization's goals is known as:

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters