MANA EXAM 1 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question 1.
Clearing House Interbank Payments System (CHIPS) is an organization that provides secure
communications for contracts, invoices, and other trade documents that normally accompany cash
payments
ANSWER
FALSE (its SWIFT Society of Worldwide Interbank Financial Telecommunications)
Question 2.
Because Turkey is a Muslim country, the consumption of alcoholic beverages is prohibited there
ANSWER
FALSE only islam is prohibited
Question 3.
A put option obligates an investor to sell an asset at a predetermined price
ANSWER
FALSE not an obligation
Question 4.
Latin American negotiators will frequently engage in long periods of silence, or may have peripheral
discussions among one another while ignoring foreign business people in the room
ANSWER
FALSE that happens in Japan
Question 5.
Strategic alliances are primarily aimed at enhancing goodwill
ANSWER
FALSE aimed at enhancing revenue
1/9
, Question 6.
A fundamental consideration that must be made in business is the risk-return trade-off.
In general, the greater the risk (loss of capital invested) entrepreneurs are willing to take, the greater
the reward (profit) they are likely to reap
ANSWER
true
Question 7.
Microsoft (USA), Toyota (Japan), Lenovo (China), and Petrobras (Brazil) are just a few of the hundreds of
large multinational enterprises that are based in one country but own and operate establishments in
others
ANSWER
TRUE
Question 8.
When doing business in Japan, it is appropriate to look directly into the eyes of your host
ANSWER
FALSE not appropriate
Question 9.
The ability of a firm to adjust to a culture different from its own is called acculturation
ANSWER
TRUE
Question 10.
When Coca-Cola acquired major assets of Parle Exports in India, it instantly received access to Parle's
huge national bottling and distribution network. This is an example of international joint venture in
global markets
ANSWER
TRUE
2/9
CORRECT ANSWERS
Question 1.
Clearing House Interbank Payments System (CHIPS) is an organization that provides secure
communications for contracts, invoices, and other trade documents that normally accompany cash
payments
ANSWER
FALSE (its SWIFT Society of Worldwide Interbank Financial Telecommunications)
Question 2.
Because Turkey is a Muslim country, the consumption of alcoholic beverages is prohibited there
ANSWER
FALSE only islam is prohibited
Question 3.
A put option obligates an investor to sell an asset at a predetermined price
ANSWER
FALSE not an obligation
Question 4.
Latin American negotiators will frequently engage in long periods of silence, or may have peripheral
discussions among one another while ignoring foreign business people in the room
ANSWER
FALSE that happens in Japan
Question 5.
Strategic alliances are primarily aimed at enhancing goodwill
ANSWER
FALSE aimed at enhancing revenue
1/9
, Question 6.
A fundamental consideration that must be made in business is the risk-return trade-off.
In general, the greater the risk (loss of capital invested) entrepreneurs are willing to take, the greater
the reward (profit) they are likely to reap
ANSWER
true
Question 7.
Microsoft (USA), Toyota (Japan), Lenovo (China), and Petrobras (Brazil) are just a few of the hundreds of
large multinational enterprises that are based in one country but own and operate establishments in
others
ANSWER
TRUE
Question 8.
When doing business in Japan, it is appropriate to look directly into the eyes of your host
ANSWER
FALSE not appropriate
Question 9.
The ability of a firm to adjust to a culture different from its own is called acculturation
ANSWER
TRUE
Question 10.
When Coca-Cola acquired major assets of Parle Exports in India, it instantly received access to Parle's
huge national bottling and distribution network. This is an example of international joint venture in
global markets
ANSWER
TRUE
2/9
