Question 1

Compliance to IASB standards is mandatory for countries to engage in international trade.

Accepted Answer

A) True 
 B)False  False

Question 2

Define tax credit and tax treaty.

Accepted Answer

A tax credit allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government.A tax treaty between two countries is an agreement specifying what items of income will be taxed by the authorities of the country where the income is earned.

Question 3

A deferral principle specifies that parent companies are not taxed on foreign source income until _____.

Accepted Answer

A)  the subsidiary providing income makes some profit 
B)  they actually receive a dividend 
C)  they acquire majority stake in the subsidiary 
D)  the subsidiary providing income is listed in the U.S. 
A)  the subsidiary providing income makes some profit 
B)  they actually receive a dividend 
C)  they acquire majority stake in the subsidiary 
D)  the subsidiary providing income is listed in the U.S. B

Question 4

A _____ represents the remuneration paid to the owners of technology,patents,or trade names for the use of that technology or the right to manufacture and/or sell products under those patents or trade names.

Accepted Answer

A)  fronting loan 
B)  fee 
C)  royalty 
D)  transfer price 
A)  fronting loan 
B)  fee 
C)  royalty 
D)  transfer price

Question 5

Describe the problem of blocked earnings.

Accepted Answer

When evaluating a foreign investment opp

Question 6

The technical process by which an independent person gathers evidence for determining if financial accounts conform to required accounting standards is known as _____.

Accepted Answer

A)  standardization 
B)  an audit 
C)  reporting 
D)  a benchmark 
A)  standardization 
B)  an audit 
C)  reporting 
D)  a benchmark

Question 7

Explain why the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

Accepted Answer

In many international businesses,the sam

Question 8

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

Accepted Answer

In a typical firm,the control process is

Question 9

A tax credit 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) True 
 B)False

Question 10

_____ is the technique financial managers use to try to quantify the benefits,costs,and risks of an investment.

Accepted Answer

A)  Capital budgeting 
B)  External audit 
C)  Transfer pricing 
D)  Control system analysis 
A)  Capital budgeting 
B)  External audit 
C)  Transfer pricing 
D)  Control system analysis

Question 11

A _____ is a loan between a parent and its subsidiary channeled through a financial intermediary,usually a large international bank.

Accepted Answer

A)  fronting loan 
B)  equity loan 
C)  direct loan 
D)  security loan 
A)  fronting loan 
B)  equity loan 
C)  direct loan 
D)  security loan

Question 12

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 13

A tax treaty between two countries is formed to fix the exchange rates between the two countries.

Accepted Answer

A) True 
 B)False

Question 14

A European subsidiary of a U.S.firm will usually prepare its budgets in Euro.

Accepted Answer

A) True 
 B)False

Question 15

Every time a firm changes cash from one currency into another currency it must bear a transaction cost.

Accepted Answer

A) True 
 B)False

Question 16

_____ costs are incurred every time a firm changes cash from one currency into another currency.

Accepted Answer

A)  Dividend 
B)  Capital 
C)  Fixed 
D)  Transaction 
A)  Dividend 
B)  Capital 
C)  Fixed 
D)  Transaction

Question 17

Capital budgeting is the technique financial managers use to try to quantify the benefits,costs,and risks of an investment.

Accepted Answer

A) True 
 B)False

Question 18

Transnational financing occurs when a firm based in one country enters another country to raise capital _____.

Accepted Answer

A)  by borrowing from financial institutions 
B)  from the sale of stocks or bonds 
C)  by borrowing from banks 
D)  through exchange policies of governments 
A)  by borrowing from financial institutions 
B)  from the sale of stocks or bonds 
C)  by borrowing from banks 
D)  through exchange policies of governments

Question 19

Of the five combinations,Lessard and Lorange recommend that firms use the _____ spot exchange rate to translate both the budget and performance figures into the corporate currency.

Accepted Answer

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

Question 20

Firms cannot use transfer prices to move funds from a subsidiary to the parent company when financial transfers in the form of dividends are blocked by host-country government policies.

Accepted Answer

A) True 
 B)False

Compliance to IASB standards is mandatory for countries to engage in international trade.

Define tax credit and tax treaty.

A deferral principle specifies that parent companies are not taxed on foreign source income until _____.

A _____ represents the remuneration paid to the owners of technology,patents,or trade names for the use of that technology or the right to manufacture and/or sell products under those patents or trade names.

Describe the problem of blocked earnings.

The technical process by which an independent person gathers evidence for determining if financial accounts conform to required accounting standards is known as _____.

Explain why the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

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

A tax credit allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government.

_____ is the technique financial managers use to try to quantify the benefits,costs,and risks of an investment.

A _____ is a loan between a parent and its subsidiary channeled through a financial intermediary,usually a large international bank.

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

A tax treaty between two countries is formed to fix the exchange rates between the two countries.

A European subsidiary of a U.S.firm will usually prepare its budgets in Euro.

Every time a firm changes cash from one currency into another currency it must bear a transaction cost.

_____ costs are incurred every time a firm changes cash from one currency into another currency.

Capital budgeting is the technique financial managers use to try to quantify the benefits,costs,and risks of an investment.

Transnational financing occurs when a firm based in one country enters another country to raise capital _____.

Of the five combinations,Lessard and Lorange recommend that firms use the _____ spot exchange rate to translate both the budget and performance figures into the corporate currency.

Firms cannot use transfer prices to move funds from a subsidiary to the parent company when financial transfers in the form of dividends are blocked by host-country government policies.

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

Compliance to IASB standards is mandatory for countries to engage in international trade.

Define tax credit and tax treaty.

A deferral principle specifies that parent companies are not taxed on foreign source income until _____.

A _____ represents the remuneration paid to the owners of technology,patents,or trade names for the use of that technology or the right to manufacture and/or sell products under those patents or trade names.

Describe the problem of blocked earnings.

The technical process by which an independent person gathers evidence for determining if financial accounts conform to required accounting standards is known as _____.

Explain why the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

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

A tax credit allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government.

_____ is the technique financial managers use to try to quantify the benefits,costs,and risks of an investment.

A _____ is a loan between a parent and its subsidiary channeled through a financial intermediary,usually a large international bank.

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

A tax treaty between two countries is formed to fix the exchange rates between the two countries.

A European subsidiary of a U.S.firm will usually prepare its budgets in Euro.

Every time a firm changes cash from one currency into another currency it must bear a transaction cost.

_____ costs are incurred every time a firm changes cash from one currency into another currency.

Capital budgeting is the technique financial managers use to try to quantify the benefits,costs,and risks of an investment.

Transnational financing occurs when a firm based in one country enters another country to raise capital _____.

Of the five combinations,Lessard and Lorange recommend that firms use the _____ spot exchange rate to translate both the budget and performance figures into the corporate currency.

Firms cannot use transfer prices to move funds from a subsidiary to the parent company when financial transfers in the form of dividends are blocked by host-country government policies.

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