Chapter 01: Multinational Financial Management: An Overview
s! s! s! s! s! s!
,Chapter 01: Multinational Financial Management: An Overview
s! s! s! s! s! s!
1. The commonly accepted goal of an MNC is to: s! s! s! s! s! s! s! s!
a. maximize short-term earnings. s! s!
b. maximize shareholder wealth. s! s!
c. minimize risk. s!
d. A and C. s! s!
e. maximize international sales. s! s!
ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES: INFM.MADU.15.01.01
s! s !
NATIONAL STANDARDS: United States - BUSPROG.INFM .MADU.15.03
s! s ! s! s! s! s!
STATE STANDARDS:
s! United States - OH - DISC.INFM.MADU.15.02 s! s! s! s! s!
KEYWORDS: Bloom's: Knowledge s!
2. With regard to corporate goals, an MNC is mostly concerned with maximizing
s! s! s! s! s! s! s! s! s! s! s! s!
, and a purely domestic firm is mostly concerned with maximizing
s! s! s! s! s! s! s! s! s! s! s! .
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b. shareholder wealth; shareholder wealth s! s! s!
,Chapter 01: Multinational Financial Management: An Overview
s! s! s! s! s! s!
c. short-term earnings; sales volume
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d. s
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ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES: INFM.MADU.15.01.01
s! s !
NATIONAL STANDARDS: United States - BUSPROG.INFM .MADU.15.03
s! s ! s! s! s! s!
STATE STANDARDS:
s! United States - OH - DISC.INFM.MADU.15.02
s! s! s! s! s!
KEYWORDS: Bloom's: Knowledge s!
3. For an MNC, agency costs are typically:
s! s! s! s! s! s!
a. nonexistent
b. larger than agency costs of a small purely domestic firm.
s! s! s! s! s! s! s! s! s!
c. smaller than agency c s! s! s!
osts of a small purely s! s! s! s! s!
domestic firm. s!
d. the same as agency costs of a small purely domestic firm.
s! s! s! s! s! s! s! s! s! s!
ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES:
s! s ! INFM.MADU.15.01.01
NATIONAL STANDARDS:
s! s ! United States - BUSPROG.INFM .MADU.15.03
s! s! s! s!
, Chapter 01: Multinational Financial Management: An Overview
s! s! s! s! s! s!
STATE STANDARDS:
s! United States - OH - DISC.INFM.MADU.15.02
s! s! s! s! s!
KEYWORDS: Bloom's: Knowledge
s!
s! s! s! s! s! s!
,Chapter 01: Multinational Financial Management: An Overview
s! s! s! s! s! s!
1. The commonly accepted goal of an MNC is to: s! s! s! s! s! s! s! s!
a. maximize short-term earnings. s! s!
b. maximize shareholder wealth. s! s!
c. minimize risk. s!
d. A and C. s! s!
e. maximize international sales. s! s!
ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES: INFM.MADU.15.01.01
s! s !
NATIONAL STANDARDS: United States - BUSPROG.INFM .MADU.15.03
s! s ! s! s! s! s!
STATE STANDARDS:
s! United States - OH - DISC.INFM.MADU.15.02 s! s! s! s! s!
KEYWORDS: Bloom's: Knowledge s!
2. With regard to corporate goals, an MNC is mostly concerned with maximizing
s! s! s! s! s! s! s! s! s! s! s! s!
, and a purely domestic firm is mostly concerned with maximizing
s! s! s! s! s! s! s! s! s! s! s! .
a. s
h
a
r
e
h
o
l
d
e
r
s
!
w
e
a
l
t
h
;
s
!
s
h
o
r
t
-
t
e
r
m
s
!
e
a
r
n
i
n
g
s
b. shareholder wealth; shareholder wealth s! s! s!
,Chapter 01: Multinational Financial Management: An Overview
s! s! s! s! s! s!
c. short-term earnings; sales volume
s! s! s!
d. s
h
o
rt
-
t
e
r
m
e s!
a
r
n
i
n
g
s
; s!
s
h
a
r
e
h
o
l
d
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w
e
a
lt
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ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES: INFM.MADU.15.01.01
s! s !
NATIONAL STANDARDS: United States - BUSPROG.INFM .MADU.15.03
s! s ! s! s! s! s!
STATE STANDARDS:
s! United States - OH - DISC.INFM.MADU.15.02
s! s! s! s! s!
KEYWORDS: Bloom's: Knowledge s!
3. For an MNC, agency costs are typically:
s! s! s! s! s! s!
a. nonexistent
b. larger than agency costs of a small purely domestic firm.
s! s! s! s! s! s! s! s! s!
c. smaller than agency c s! s! s!
osts of a small purely s! s! s! s! s!
domestic firm. s!
d. the same as agency costs of a small purely domestic firm.
s! s! s! s! s! s! s! s! s! s!
ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES:
s! s ! INFM.MADU.15.01.01
NATIONAL STANDARDS:
s! s ! United States - BUSPROG.INFM .MADU.15.03
s! s! s! s!
, Chapter 01: Multinational Financial Management: An Overview
s! s! s! s! s! s!
STATE STANDARDS:
s! United States - OH - DISC.INFM.MADU.15.02
s! s! s! s! s!
KEYWORDS: Bloom's: Knowledge
s!
