Question 1

According to Lessard-Lorange model,_____ is the spot exchange rate forecast for the end of the budget period.

Accepted Answer

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

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

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 D

Question 4

_____ 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 5

By pooling cash resources centrally firms can _____.

Accepted Answer

A)  better handle short-term cash needs of subsidiaries 
B)  increase liquidity of independent subsidiaries 
C)  reduce the total size of the cash pool it must hold 
D)  avoid government-imposed restrictions on capital flows 
A)  better handle short-term cash needs of subsidiaries 
B)  increase liquidity of independent subsidiaries 
C)  reduce the total size of the cash pool it must hold 
D)  avoid government-imposed restrictions on capital flows

Question 6

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

Question 7

Accounting standards are rules for preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 8

The principles of multilateral netting and bilateral netting are different.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

Among the factors complicating the proce

Question 10

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 11

Pooling the cash of all the subsidiaries reduces the earning potential for firms.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of tax havens?

Accepted Answer

A)  Firms that export to tax havens get special tax concessions from home governments. 
B)  Firms would require huge capital investments to start business in tax havens. 
C)  Nations such as United States are widely regarded as tax havens. 
D)  Firms can save tax by establishing a non-operating subsidiary in the tax haven. 
A)  Firms that export to tax havens get special tax concessions from home governments. 
B)  Firms would require huge capital investments to start business in tax havens. 
C)  Nations such as United States are widely regarded as tax havens. 
D)  Firms can save tax by establishing a non-operating subsidiary in the tax haven.

Question 13

How is a country's accounting system affected by the providers of capital? Explain with the help of suitable examples.

Accepted Answer

In countries where there were well-devel

Question 14

Most international businesses require all budgets and performance data within the firm to be expressed in the currencies of the countries where its subunits are located.

Accepted Answer

A) True 
 B)False

Question 15

Evaluation of a subsidiary should not be separate from the evaluation of its manager.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Historically,financial reports prepared by firms in Germany _____.

Accepted Answer

A)  reveal less information than reports of British or U.S.firms 
B)  contain detailed information required by individual investors 
C)  overvalued assets and undervalued liabilities 
D)  made more public disclosures compared to firms in other countries 
A)  reveal less information than reports of British or U.S.firms 
B)  contain detailed information required by individual investors 
C)  overvalued assets and undervalued liabilities 
D)  made more public disclosures compared to firms in other countries

Question 18

Describe the problem of blocked earnings.

Accepted Answer

When evaluating a foreign investment opp

Question 19

Banks are the most important source of external capital for business enterprises in the United States.

Accepted Answer

A) True 
 B)False

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

According to Lessard-Lorange model,_____ is the spot exchange rate forecast for the end of the budget period.

Define tax credit and tax treaty.

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.

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

By pooling cash resources centrally firms can _____.

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

Accounting standards are rules for preparing financial statements.

The principles of multilateral netting and bilateral netting are different.

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

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

Pooling the cash of all the subsidiaries reduces the earning potential for firms.

Which of the following statements is true of tax havens?

How is a country's accounting system affected by the providers of capital? Explain with the help of suitable examples.

Most international businesses require all budgets and performance data within the firm to be expressed in the currencies of the countries where its subunits are located.

Evaluation of a subsidiary should not be separate from the evaluation of its manager.

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

Historically,financial reports prepared by firms in Germany _____.

Describe the problem of blocked earnings.

Banks are the most important source of external capital for business enterprises in the United States.

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

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Filters

Exam 20: Accounting and Finance in the International Business

According to Lessard-Lorange model,_____ is the spot exchange rate forecast for the end of the budget period.

Define tax credit and tax treaty.

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.

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

By pooling cash resources centrally firms can _____.

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

Accounting standards are rules for preparing financial statements.

The principles of multilateral netting and bilateral netting are different.

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

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

Pooling the cash of all the subsidiaries reduces the earning potential for firms.

Which of the following statements is true of tax havens?

How is a country's accounting system affected by the providers of capital? Explain with the help of suitable examples.

Most international businesses require all budgets and performance data within the firm to be expressed in the currencies of the countries where its subunits are located.

Evaluation of a subsidiary should not be separate from the evaluation of its manager.

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

Historically,financial reports prepared by firms in Germany _____.

Describe the problem of blocked earnings.

Banks are the most important source of external capital for business enterprises in the United States.

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

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Filters