Question 1

Performance of international subsidiaries depends on the transfer price set-up by the corporate.

Accepted Answer

A) True 
 B)False

Question 2

Describe three factors that complicate the process of an international business.

Accepted Answer

Among the factors complicating the proce

Question 3

A _____ 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.

Accepted Answer

A)  tax deferral agreement 
B)  fixed-rate treaty 
C)  tax treaty 
D)  free trade agreement 
A)  tax deferral agreement 
B)  fixed-rate treaty 
C)  tax treaty 
D)  free trade agreement

Question 4

What are the advantages of using royalties and fees to move money across borders?

Accepted Answer

Royalties and fees have certain tax adva

Question 5

Lessard and Lorange recommend that firms use the projected spot exchange rate to translate both the budget and performance figures into the corporate currency.

Accepted Answer

A) True 
 B)False

Question 6

In countries such as the United States and Britain,firms typically raised capital by _____.

Accepted Answer

A)  obtaining funding from the government 
B)  borrowing money from national banks 
C)  issuing stock or bonds to investors 
D)  borrowing money from international banks 
A)  obtaining funding from the government 
B)  borrowing money from national banks 
C)  issuing stock or bonds to investors 
D)  borrowing money from international banks

Question 7

Most international businesses require all budgets and performance data within the firm to be expressed in the "corporate currency," which is normally _____.

Accepted Answer

A)  a common currency such as the U.S. dollar 
B)  the home currency 
C)  a foreign currency 
D)  the currency of the country where products are sold 
A)  a common currency such as the U.S. dollar 
B)  the home currency 
C)  a foreign currency 
D)  the currency of the country where products are sold

Question 8

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 9

Accounting standards are rules for preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Transfer price refers to the _____.

Accepted Answer

A)  price at which goods and services are transferred to a subsidiary 
B)  price at which the title of products is transferred to a customer 
C)  price at which a supplier provides raw materials to a firm 
D)  cost incurred when goods or services are transferred from one place to another 
A)  price at which goods and services are transferred to a subsidiary 
B)  price at which the title of products is transferred to a customer 
C)  price at which a supplier provides raw materials to a firm 
D)  cost incurred when goods or services are transferred from one place to another

Question 11

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 12

The total size of a firm's cash pool increases when it pools cash reserves of subsidiaries.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following combinations of exchange rates was ruled out by Lessard and Lorange as illogical and unreasonable?

Accepted Answer

A)  Translating budget using ending rate and translating actual performance using initial rate 
B)  Translating both actual performance and budget using projected rate 
C)  Translating both actual performance and budget using initial rate 
D)  Translating budget using projected rate and translating actual performance using ending rate 
A)  Translating budget using ending rate and translating actual performance using initial rate 
B)  Translating both actual performance and budget using projected rate 
C)  Translating both actual performance and budget using initial rate 
D)  Translating budget using projected rate and translating actual performance using ending rate

Question 14

The principles of multilateral netting and bilateral netting are different.

Accepted Answer

A) True 
 B)False

Question 15

Money management decisions attempt to manage the firm's working capital most efficiently.

Accepted Answer

A) True 
 B)False

Question 16

The _____ writes the generally accepted accounting principles (GAAP)that govern the financial statements of U.S.firms.

Accepted Answer

A)  US Securities and Exchange Commission 
B)  Office of Economic Analysis 
C)  International Accounting Standards Board 
D)  Financial Accounting Standards Board 
A)  US Securities and Exchange Commission 
B)  Office of Economic Analysis 
C)  International Accounting Standards Board 
D)  Financial Accounting Standards Board

Question 17

A deferral principle specifies that parent companies are not taxed on foreign source income until they actually receive a dividend.

Accepted Answer

A) True 
 B)False

Question 18

The problem of blocked earnings is not as serious now as it once was because _____.

Accepted Answer

A)  fixed exchange rates have become more common now 
B)  governmental intervention in earnings is more frequent now 
C)  there is greater acceptance of free market economics now 
D)  political risk within the economy is very low in modern times 
A)  fixed exchange rates have become more common now 
B)  governmental intervention in earnings is more frequent now 
C)  there is greater acceptance of free market economics now 
D)  political risk within the economy is very low in modern times

Question 19

Accounting is shaped by the environment in which it operates.

Accepted Answer

A) True 
 B)False

Question 20

The initial rate,in the Lessard-Lorange Model,refers to the spot exchange rate when the budget is adopted.

Accepted Answer

A) True 
 B)False

Performance of international subsidiaries depends on the transfer price set-up by the corporate.

Describe three factors that complicate the process of an international business.

A _____ 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.

What are the advantages of using royalties and fees to move money across borders?

Lessard and Lorange recommend that firms use the projected spot exchange rate to translate both the budget and performance figures into the corporate currency.

In countries such as the United States and Britain,firms typically raised capital by _____.

Most international businesses require all budgets and performance data within the firm to be expressed in the "corporate currency," which is normally _____.

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

Accounting standards are rules for preparing financial statements.

Transfer price refers to the _____.

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

The total size of a firm's cash pool increases when it pools cash reserves of subsidiaries.

Which of the following combinations of exchange rates was ruled out by Lessard and Lorange as illogical and unreasonable?

The principles of multilateral netting and bilateral netting are different.

Money management decisions attempt to manage the firm's working capital most efficiently.

The _____ writes the generally accepted accounting principles (GAAP)that govern the financial statements of U.S.firms.

A deferral principle specifies that parent companies are not taxed on foreign source income until they actually receive a dividend.

The problem of blocked earnings is not as serious now as it once was because _____.

Accounting is shaped by the environment in which it operates.

The initial rate,in the Lessard-Lorange Model,refers to the spot exchange rate when the budget is adopted.

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

Performance of international subsidiaries depends on the transfer price set-up by the corporate.

Describe three factors that complicate the process of an international business.

A _____ 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.

What are the advantages of using royalties and fees to move money across borders?

Lessard and Lorange recommend that firms use the projected spot exchange rate to translate both the budget and performance figures into the corporate currency.

In countries such as the United States and Britain,firms typically raised capital by _____.

Most international businesses require all budgets and performance data within the firm to be expressed in the "corporate currency," which is normally _____.

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

Accounting standards are rules for preparing financial statements.

Transfer price refers to the _____.

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

The total size of a firm's cash pool increases when it pools cash reserves of subsidiaries.

Which of the following combinations of exchange rates was ruled out by Lessard and Lorange as illogical and unreasonable?

The principles of multilateral netting and bilateral netting are different.

Money management decisions attempt to manage the firm's working capital most efficiently.

The _____ writes the generally accepted accounting principles (GAAP)that govern the financial statements of U.S.firms.

A deferral principle specifies that parent companies are not taxed on foreign source income until they actually receive a dividend.

The problem of blocked earnings is not as serious now as it once was because _____.

Accounting is shaped by the environment in which it operates.

The initial rate,in the Lessard-Lorange Model,refers to the spot exchange rate when the budget is adopted.

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