BUSI 3250 UPDATED EXAM SCRIPT QUESTIONS AND
ANSWERS SURE A+
✔✔The Bretton Woods system led to minimal growth in international trade but helped to
reduce inflation levels - ✔✔False
✔✔The International Monetary Fund uses the U.S dollar as its unit of account -
✔✔False
✔✔In a currency board arrangement, a country's government commits to adopt the
currency of another - ✔✔False
✔✔The law of one price states that in an efficient market, like products will never have
like prices - ✔✔False
✔✔Countries put limitations on the convertibility of their currencies when they are
concerned that their foreign reserves could be depleted. - ✔✔True
✔✔The balance of payments (BOPs) is a record of a country's transactions with its
major trading partners - ✔✔False
✔✔The United States in recent years has had a significant deficit in its current account.
This means that the U.S citizens are exporting more than they are importing - ✔✔False
✔✔Bretton Woods led to an exchange rate agreement known as the Bretton Woods
System or - ✔✔the gold exchange standard
✔✔Who took the United States off the gold system? - ✔✔President Nixon
✔✔Problems of the gold standard include - ✔✔storage cost, weight, doesn't earn
interest
✔✔Strategic plans promote consistency of action among the firms managers worldwide
and encourage them to consider the ramifications of their actions in the firms other
geographic and functional areas - ✔✔True
✔✔Why is scenario analyses an important tool for managers? - ✔✔By anticipating the
future and recognizing the warning signs of turbulence ahead, managers can develop
more effective strategies
✔✔Jenna reported to the management team that their proposed investment in Great
Britain could be affected by the Brexit announcement. Which aspect of strategic
planning does this demonstrate? - ✔✔Analyze the company's external environments
, ✔✔Which aspect of strategic planning helps a company maintain itself within the
boundaries of the mission and vision statements? - ✔✔setting corporate objectives
✔✔To set corporate objectives, management must first - ✔✔define the firms mission
✔✔A company would create procedures in order to - ✔✔specify how certain activities
will be carried out
✔✔Performance measures are done to assess - ✔✔if the strategy and its
implementation are proceeding successfully
✔✔A company would rely on triply bottom line accounting to - ✔✔measure the company
strategic performance
✔✔Knowledge that an individual has but that is difficult to express clearly in words,
pictures, or formulas and is therefore difficult to transmit to others is known as _______
knowledge - ✔✔Tacit
✔✔A broad statement that defines the purpose for a company's existence, including its
business objectives, and approach for reaching those objectives is known as a
__________ statement - ✔✔Mission
✔✔One of the significant differences between formal and informal institutions is how
they gain compliance - ✔✔True
✔✔The United Nations operates with voluntary agreements, so it is essentially an
informal institution - ✔✔True
✔✔Permanent members of the UN Security Council vote on Security Council measures
and only the Secretary-General of the UN has veto power - ✔✔False
✔✔The World Bank is made up of one large institution, the International Development
Association, and three smaller institutions. - ✔✔False
✔✔The International Finance Corporation (IFC) invests in companies and financial
institutions in developing countries - ✔✔True
✔✔The WTO has negotiated a TRIPS agreement whereby property rights do not take
precedence over public health - ✔✔True
✔✔ASEAN, whose initial goal was political, to foster peaceful relations among
members, includes China as its core member. - ✔✔False
ANSWERS SURE A+
✔✔The Bretton Woods system led to minimal growth in international trade but helped to
reduce inflation levels - ✔✔False
✔✔The International Monetary Fund uses the U.S dollar as its unit of account -
✔✔False
✔✔In a currency board arrangement, a country's government commits to adopt the
currency of another - ✔✔False
✔✔The law of one price states that in an efficient market, like products will never have
like prices - ✔✔False
✔✔Countries put limitations on the convertibility of their currencies when they are
concerned that their foreign reserves could be depleted. - ✔✔True
✔✔The balance of payments (BOPs) is a record of a country's transactions with its
major trading partners - ✔✔False
✔✔The United States in recent years has had a significant deficit in its current account.
This means that the U.S citizens are exporting more than they are importing - ✔✔False
✔✔Bretton Woods led to an exchange rate agreement known as the Bretton Woods
System or - ✔✔the gold exchange standard
✔✔Who took the United States off the gold system? - ✔✔President Nixon
✔✔Problems of the gold standard include - ✔✔storage cost, weight, doesn't earn
interest
✔✔Strategic plans promote consistency of action among the firms managers worldwide
and encourage them to consider the ramifications of their actions in the firms other
geographic and functional areas - ✔✔True
✔✔Why is scenario analyses an important tool for managers? - ✔✔By anticipating the
future and recognizing the warning signs of turbulence ahead, managers can develop
more effective strategies
✔✔Jenna reported to the management team that their proposed investment in Great
Britain could be affected by the Brexit announcement. Which aspect of strategic
planning does this demonstrate? - ✔✔Analyze the company's external environments
, ✔✔Which aspect of strategic planning helps a company maintain itself within the
boundaries of the mission and vision statements? - ✔✔setting corporate objectives
✔✔To set corporate objectives, management must first - ✔✔define the firms mission
✔✔A company would create procedures in order to - ✔✔specify how certain activities
will be carried out
✔✔Performance measures are done to assess - ✔✔if the strategy and its
implementation are proceeding successfully
✔✔A company would rely on triply bottom line accounting to - ✔✔measure the company
strategic performance
✔✔Knowledge that an individual has but that is difficult to express clearly in words,
pictures, or formulas and is therefore difficult to transmit to others is known as _______
knowledge - ✔✔Tacit
✔✔A broad statement that defines the purpose for a company's existence, including its
business objectives, and approach for reaching those objectives is known as a
__________ statement - ✔✔Mission
✔✔One of the significant differences between formal and informal institutions is how
they gain compliance - ✔✔True
✔✔The United Nations operates with voluntary agreements, so it is essentially an
informal institution - ✔✔True
✔✔Permanent members of the UN Security Council vote on Security Council measures
and only the Secretary-General of the UN has veto power - ✔✔False
✔✔The World Bank is made up of one large institution, the International Development
Association, and three smaller institutions. - ✔✔False
✔✔The International Finance Corporation (IFC) invests in companies and financial
institutions in developing countries - ✔✔True
✔✔The WTO has negotiated a TRIPS agreement whereby property rights do not take
precedence over public health - ✔✔True
✔✔ASEAN, whose initial goal was political, to foster peaceful relations among
members, includes China as its core member. - ✔✔False
