BUS 410 Practice Exam Questions and
Answers | Complete Exam Prep
Resource | A+ Pass Guaranteed
• commercial risk . Answer: risk that one party to a transaction will fail to perform
as promised
• risk management . Answer: continuing process to identify, analyze, evaluate, and
minimize loss exposures and to mitigate adverse affects of loss
• ability to risk manage is dependent on: . Answer: knowledge and experience
• transport risk . Answer: - potential for unexpected shipping delays and expenses
or to damage or loss to goods during transit
- passes from seller to buyer at some point
• currency control risk . Answer: when a firm must convert one currency to another
before it can be used
• exchange rate risk . Answer: caused by fluctuations in relative value of two
currencies
• forward exchange contract . Answer: to buy or sell currency at an agreed rate for
a certain time
• currency option . Answer: contract to buy or sell currency at an agreed rate for a
certain time
,• forward exchange contract . Answer: to buy or sell currency at an agreed rate for
a certain time
• currency option . Answer: contract to buy certain amount of currency on or
before a date or to let it expire
• customs brokers . Answer: agent of importer licensed to tract business with
customs authorities and clear goods for international travel
• freight forwarders . Answer: agent of shippers to arrange transportation and
insurance and in assisting in preparing documents for export
• international Banks . Answer: service international trade and business
• international trade administration . Answer: assistnace agencies
• World Intellectual Property Organization . Answer: part of UN
• intellectual property rights . Answer: legal rights which result from intellectual
activity in the industrial, scientific, literary, and artistic fields
• IP licensing agreements . Answer: contracts by which the owner of intellectual
property can grant specific rights in that property to another property with
specified conditions
(differ by country)
• franchising . Answer: a business arrangement that uses an agreement to license,
control, and protect the use of the franchisor's IP and such
, • IP infringement . Answer: the unauthorized reproduction, display, distribution, or
use of the IP rights of another
(often unintentional)
• foreign direct investment . Answer: ownership/operation or effective control of
the productive assets of an ongoing foreign business
• home country . Answer: country whose laws the investing corporation was
created/headquartered in
• host country . Answer: target of investment
• foreign branch . Answer: extension of the company in another country
(usually not a separate legal entity)
• foreign subsidiary . Answer: separate legal entity from another country whose
laws control it
(still owned by part corp.)
• affiliates . Answer: multiple subsidiaries controlled by one parent company
• joint venture . Answer: cooperative business venture between two or more
companies for profit
• local participation . Answer: a share of the business is owned by nationals of the
host country
Answers | Complete Exam Prep
Resource | A+ Pass Guaranteed
• commercial risk . Answer: risk that one party to a transaction will fail to perform
as promised
• risk management . Answer: continuing process to identify, analyze, evaluate, and
minimize loss exposures and to mitigate adverse affects of loss
• ability to risk manage is dependent on: . Answer: knowledge and experience
• transport risk . Answer: - potential for unexpected shipping delays and expenses
or to damage or loss to goods during transit
- passes from seller to buyer at some point
• currency control risk . Answer: when a firm must convert one currency to another
before it can be used
• exchange rate risk . Answer: caused by fluctuations in relative value of two
currencies
• forward exchange contract . Answer: to buy or sell currency at an agreed rate for
a certain time
• currency option . Answer: contract to buy or sell currency at an agreed rate for a
certain time
,• forward exchange contract . Answer: to buy or sell currency at an agreed rate for
a certain time
• currency option . Answer: contract to buy certain amount of currency on or
before a date or to let it expire
• customs brokers . Answer: agent of importer licensed to tract business with
customs authorities and clear goods for international travel
• freight forwarders . Answer: agent of shippers to arrange transportation and
insurance and in assisting in preparing documents for export
• international Banks . Answer: service international trade and business
• international trade administration . Answer: assistnace agencies
• World Intellectual Property Organization . Answer: part of UN
• intellectual property rights . Answer: legal rights which result from intellectual
activity in the industrial, scientific, literary, and artistic fields
• IP licensing agreements . Answer: contracts by which the owner of intellectual
property can grant specific rights in that property to another property with
specified conditions
(differ by country)
• franchising . Answer: a business arrangement that uses an agreement to license,
control, and protect the use of the franchisor's IP and such
, • IP infringement . Answer: the unauthorized reproduction, display, distribution, or
use of the IP rights of another
(often unintentional)
• foreign direct investment . Answer: ownership/operation or effective control of
the productive assets of an ongoing foreign business
• home country . Answer: country whose laws the investing corporation was
created/headquartered in
• host country . Answer: target of investment
• foreign branch . Answer: extension of the company in another country
(usually not a separate legal entity)
• foreign subsidiary . Answer: separate legal entity from another country whose
laws control it
(still owned by part corp.)
• affiliates . Answer: multiple subsidiaries controlled by one parent company
• joint venture . Answer: cooperative business venture between two or more
companies for profit
• local participation . Answer: a share of the business is owned by nationals of the
host country
