BUSI 1301 PRACTICE EXAM
QUESTIONS WITH 100%
CORRECT DETAILED ANSWERS
When considering international advertising efforts, a company that adopts a "glocal"
approach is - Answer- developing a cost-effective common strategy for large regions.
The need to change the color of packaging when selling a product in a new market is
generally a result of the influence of - Answer- cultural differences.
One way a company uses sales promotion is by providing point-of-purchase displays to
retail stores. - Answer- TRUE
A frozen pizza company markets into many different areas of the world and in order to
do well in local markets it has to print instructions on its products in the native language
of each market. Which environmental force is the company responding to? - Answer-
sociocultural
Product attributes do not change depending on the needs of a particular market
segment. - Answer- FALSE
China is the world's largest e-commerce market with approximately_____ in online
sales - Answer- $1 Trillion
Germany's Mittelstand companies have been extremely successful pursuing: - Answer-
focused differentiation.
The issue of sustainability is central to this strategy concept: - Answer- cost focus.
Criticism of 3BL suggests 3BL is comparable to - Answer- a code of ethics hanging on
the wall in every office: it does not lead to ethical behavior.
A forward market hedge can be described as - Answer- a simple and widely-
usedtransaction.
What are the two basic sources of capital for an international firm? - Answer- internal
equity and external sources, either debt or equity
, Critics of 3BL claim that - Answer- measuring impacts on social and environmental
contexts will not get us closer to the desired state.
The legal form of a U.S. firm's foreign operation affects its tax liability. - Answer- TRUE
3BL data are not comparable across companies; an alternative is - Answer- the Global
Reporting Initiative (GRI).
Swap contracts are used to hedge - Answer- foreign currency exposure.
The process companies go through to aggregate various results from foreign
subsidiaries into one financial report is known as convergence. - Answer- TRUE
MadridGroves is based in Spain. It is considered a legal extension of the parent
company, Starshine Juices, based in Michiganand because of this the parent company
can deduct economic losses at Madrid Groves from its U.S. taxable income. This
means that Madrid Groves is a - Answer- BRANCH
The process of accounting standards convergence is - Answer- underway, but taking
longer than anticipated.
Translation exposure refers to the risks associated with language barriers between
home and host countries. - Answer- FALSE
Tax havens are financial centers in which - Answer- banking regulations are loose.
Transfer pricing may be used to - Answer- decrease IC taxes.
In a currency option hedge, "puts" are - Answer- contracts to sell foreign currency
receivables.
Researcher Sidney Gray's optimism-conservatism measure indicates the degree to
which a company - Answer- exercises caution in valuing of assets and measuring
income.
Compliance to the International Financial Reporting Standards is - Answer- based on
social obligation.
An importer accelerates payment of the necessary currency exchange (leads) when it is
thought that the currency will devalue in terms of the foreign payment currency. -
Answer- TRUE
American depository receipts represent the total dollar value of a company's worth on
the stock market. - Answer- FALSE
QUESTIONS WITH 100%
CORRECT DETAILED ANSWERS
When considering international advertising efforts, a company that adopts a "glocal"
approach is - Answer- developing a cost-effective common strategy for large regions.
The need to change the color of packaging when selling a product in a new market is
generally a result of the influence of - Answer- cultural differences.
One way a company uses sales promotion is by providing point-of-purchase displays to
retail stores. - Answer- TRUE
A frozen pizza company markets into many different areas of the world and in order to
do well in local markets it has to print instructions on its products in the native language
of each market. Which environmental force is the company responding to? - Answer-
sociocultural
Product attributes do not change depending on the needs of a particular market
segment. - Answer- FALSE
China is the world's largest e-commerce market with approximately_____ in online
sales - Answer- $1 Trillion
Germany's Mittelstand companies have been extremely successful pursuing: - Answer-
focused differentiation.
The issue of sustainability is central to this strategy concept: - Answer- cost focus.
Criticism of 3BL suggests 3BL is comparable to - Answer- a code of ethics hanging on
the wall in every office: it does not lead to ethical behavior.
A forward market hedge can be described as - Answer- a simple and widely-
usedtransaction.
What are the two basic sources of capital for an international firm? - Answer- internal
equity and external sources, either debt or equity
, Critics of 3BL claim that - Answer- measuring impacts on social and environmental
contexts will not get us closer to the desired state.
The legal form of a U.S. firm's foreign operation affects its tax liability. - Answer- TRUE
3BL data are not comparable across companies; an alternative is - Answer- the Global
Reporting Initiative (GRI).
Swap contracts are used to hedge - Answer- foreign currency exposure.
The process companies go through to aggregate various results from foreign
subsidiaries into one financial report is known as convergence. - Answer- TRUE
MadridGroves is based in Spain. It is considered a legal extension of the parent
company, Starshine Juices, based in Michiganand because of this the parent company
can deduct economic losses at Madrid Groves from its U.S. taxable income. This
means that Madrid Groves is a - Answer- BRANCH
The process of accounting standards convergence is - Answer- underway, but taking
longer than anticipated.
Translation exposure refers to the risks associated with language barriers between
home and host countries. - Answer- FALSE
Tax havens are financial centers in which - Answer- banking regulations are loose.
Transfer pricing may be used to - Answer- decrease IC taxes.
In a currency option hedge, "puts" are - Answer- contracts to sell foreign currency
receivables.
Researcher Sidney Gray's optimism-conservatism measure indicates the degree to
which a company - Answer- exercises caution in valuing of assets and measuring
income.
Compliance to the International Financial Reporting Standards is - Answer- based on
social obligation.
An importer accelerates payment of the necessary currency exchange (leads) when it is
thought that the currency will devalue in terms of the foreign payment currency. -
Answer- TRUE
American depository receipts represent the total dollar value of a company's worth on
the stock market. - Answer- FALSE
