Question 1

A(n) _____ allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government.

Accepted Answer

A)  indirect tax 
B)  tax haven 
C)  tax credit 
D)  internal tax 
A)  indirect tax 
B)  tax haven 
C)  tax credit 
D)  internal tax

Question 2

The projected rate will typically be the _____ as determined by the foreign exchange market when firms use the projected spot exchange rate to translate both the budget and performance figures into the corporate currency.

Accepted Answer

A)  transfer price 
B)  forward exchange rate 
C)  carrying cost 
D)  foreign exchange rate 
A)  transfer price 
B)  forward exchange rate 
C)  carrying cost 
D)  foreign exchange rate

Question 3

Briefly differentiate accounting standards and auditing standards.

Accepted Answer

Accounting standards are rules for prepa

Question 4

Funds can be moved out of a particular country in which a parent country has set up a subsidiary by:

Accepted Answer

A)  setting high transfer prices for the goods supplied. 
B)  removing royalties imposed on the subsidiary. 
C)  charging a discounted fee on the subsidiary. 
D)  issuing loans to the subsidiary at discounted rates. 
A)  setting high transfer prices for the goods supplied. 
B)  removing royalties imposed on the subsidiary. 
C)  charging a discounted fee on the subsidiary. 
D)  issuing loans to the subsidiary at discounted rates.

Question 5

Most banks charge a(n) _____ for moving cash from one location to another.

Accepted Answer

A)  transfer fee 
B)  internal forward rate 
C)  accounting service fee 
D)  audit fee 
A)  transfer fee 
B)  internal forward rate 
C)  accounting service fee 
D)  audit fee

Question 6

According to Lessard-Lorange model, _____ rate refers to the spot exchange rate when the budget is adopted.

Accepted Answer

A)  ending 
B)  initial 
C)  ideal 
D)  projected 
A)  ending 
B)  initial 
C)  ideal 
D)  projected

Question 7

Describe the problem of blocked earnings.

Accepted Answer

When evaluating a foreign investment opp

Question 8

When using the projected spot exchange rate to translate both the budget and performance figures into the corporate currency, the projected rate in such cases will typically be the:

Accepted Answer

A)  forward exchange rate as determined by the foreign exchange market. 
B)  exchange rate that exists at the start of a project. 
C)  exchange rate when the budget was prepared. 
D)  transfer price that a firm will offer to one or more of its subsidiaries. 
A)  forward exchange rate as determined by the foreign exchange market. 
B)  exchange rate that exists at the start of a project. 
C)  exchange rate when the budget was prepared. 
D)  transfer price that a firm will offer to one or more of its subsidiaries.

Question 9

Which of the following is a country in which banks emerged as the main providers of capital to enterprises?

Accepted Answer

A)  United States 
B)  Britain 
C)  Philippines 
D)  Switzerland 
A)  United States 
B)  Britain 
C)  Philippines 
D)  Switzerland

Question 10

Most subsidiaries of an international business operate in uniform environments.

Accepted Answer

A) True 
 B)False

Question 11

Financial management in an international business includes three sets of related decisions. Which of these involves making decisions about how to manage the firm's financial resources most efficiently?

Accepted Answer

A)  Multilateral decisions 
B)  Financing decisions 
C)  Investment decisions 
D)  Money management decisions 
A)  Multilateral decisions 
B)  Financing decisions 
C)  Investment decisions 
D)  Money management decisions

Question 12

The connection between cash flows to the parent and the source of financing must be recognized when performing capital budgeting for an international business.

Accepted Answer

A) True 
 B)False

Question 13

A tax heaven is a country that gives income tax exemptions to firms that export all or part of its products.

Accepted Answer

A) True 
 B)False

Question 14

Critics of adjusting discount rates to reflect a location's riskiness argue that it:

Accepted Answer

A)  does not penalize either distant or early cash flows enough. 
B)  penalizes distant cash flows too heavily. 
C)  does not penalize early cash flows enough. 
D)  penalizes early cash flows too heavily. 
A)  does not penalize either distant or early cash flows enough. 
B)  penalizes distant cash flows too heavily. 
C)  does not penalize early cash flows enough. 
D)  penalizes early cash flows too heavily.

Question 15

Identify a key accounting problem that international businesses are confronted with but that does not confront purely domestic businesses. Substantiate with a suitable example.

Accepted Answer

International businesses are confronted

Question 16

Describe importance of accounting information in business.

Accepted Answer

Accounting has often been referred to as

Question 17

What are the main steps in the control process of a typical firm?

Accepted Answer

In a typical firm, the control process i

Question 18

According to Lessard-Lorange model, ending rate is the spot exchange rate:

Accepted Answer

A)  forecast for the end of the budget period. 
B)  when the budget is adopted. 
C)  when no formal exchange rate exists. 
D)  when the budget and performance are being compared. 
A)  forecast for the end of the budget period. 
B)  when the budget is adopted. 
C)  when no formal exchange rate exists. 
D)  when the budget and performance are being compared.

Question 19

Three sets of related decisions are involved in financial management in an international business. Which of these involves making decisions about how to fund the chosen activities?

Accepted Answer

A)  Investment decisions 
B)  Financing decisions 
C)  Bilateral decisions 
D)  Money management decisions 
A)  Investment decisions 
B)  Financing decisions 
C)  Bilateral decisions 
D)  Money management decisions

Question 20

Firms use fronting loans to:

Accepted Answer

A)  avoid host-country restrictions on the remittance of funds from a foreign subsidiary. 
B)  implement a cost-based and fair pricing policy across an international business. 
C)  increase the profit center revenue of a subsidiary functioning in another country. 
D)  implement a market-driven and fair pricing policy across an international business. 
A)  avoid host-country restrictions on the remittance of funds from a foreign subsidiary. 
B)  implement a cost-based and fair pricing policy across an international business. 
C)  increase the profit center revenue of a subsidiary functioning in another country. 
D)  implement a market-driven and fair pricing policy across an international business.

A(n) _____ allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government.

The projected rate will typically be the _____ as determined by the foreign exchange market when firms use the projected spot exchange rate to translate both the budget and performance figures into the corporate currency.

Briefly differentiate accounting standards and auditing standards.

Funds can be moved out of a particular country in which a parent country has set up a subsidiary by:

Most banks charge a(n) _____ for moving cash from one location to another.

According to Lessard-Lorange model, _____ rate refers to the spot exchange rate when the budget is adopted.

Describe the problem of blocked earnings.

When using the projected spot exchange rate to translate both the budget and performance figures into the corporate currency, the projected rate in such cases will typically be the:

Which of the following is a country in which banks emerged as the main providers of capital to enterprises?

Most subsidiaries of an international business operate in uniform environments.

Financial management in an international business includes three sets of related decisions. Which of these involves making decisions about how to manage the firm's financial resources most efficiently?

The connection between cash flows to the parent and the source of financing must be recognized when performing capital budgeting for an international business.

A tax heaven is a country that gives income tax exemptions to firms that export all or part of its products.

Critics of adjusting discount rates to reflect a location's riskiness argue that it:

Identify a key accounting problem that international businesses are confronted with but that does not confront purely domestic businesses. Substantiate with a suitable example.

Describe importance of accounting information in business.

What are the main steps in the control process of a typical firm?

According to Lessard-Lorange model, ending rate is the spot exchange rate:

Three sets of related decisions are involved in financial management in an international business. Which of these involves making decisions about how to fund the chosen activities?

Firms use fronting loans to:

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Filters

Exam 20: Accounting and Finance in the International Business

A(n) _____ allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government.

The projected rate will typically be the _____ as determined by the foreign exchange market when firms use the projected spot exchange rate to translate both the budget and performance figures into the corporate currency.

Briefly differentiate accounting standards and auditing standards.

Funds can be moved out of a particular country in which a parent country has set up a subsidiary by:

Most banks charge a(n) _____ for moving cash from one location to another.

According to Lessard-Lorange model, _____ rate refers to the spot exchange rate when the budget is adopted.

Describe the problem of blocked earnings.

When using the projected spot exchange rate to translate both the budget and performance figures into the corporate currency, the projected rate in such cases will typically be the:

Which of the following is a country in which banks emerged as the main providers of capital to enterprises?

Most subsidiaries of an international business operate in uniform environments.

Financial management in an international business includes three sets of related decisions. Which of these involves making decisions about how to manage the firm's financial resources most efficiently?

The connection between cash flows to the parent and the source of financing must be recognized when performing capital budgeting for an international business.

A tax heaven is a country that gives income tax exemptions to firms that export all or part of its products.

Critics of adjusting discount rates to reflect a location's riskiness argue that it:

Identify a key accounting problem that international businesses are confronted with but that does not confront purely domestic businesses. Substantiate with a suitable example.

Describe importance of accounting information in business.

What are the main steps in the control process of a typical firm?

According to Lessard-Lorange model, ending rate is the spot exchange rate:

Three sets of related decisions are involved in financial management in an international business. Which of these involves making decisions about how to fund the chosen activities?

Firms use fronting loans to:

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Filters