International financial management 13th edition by jeff madura test bank

,International ||financial ||management ||13th ||edition ||by ||jeff || madura ||test ||bank
Chapter ||01: ||Multinational ||Financial ||Management: ||An ||Overview

1. The ||commonly ||accepted ||goal ||of ||an ||MNC ||is ||to:
a. maximize ||short-term ||earnings.
b. maximize ||shareholder ||wealth.
c. minimize ||risk.
d. A ||and ||C.
e. maximize |international ||sales.
ANSWER: b
DIFFICULTY: Easy
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.01
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Knowledge

2. With ||regard ||to ||corporate ||goals, ||an ||MNC ||is ||mostly ||concerned ||with ||maximizing || , |a nd ||a |purely ||domestic ||firm ||is
||mostly ||concerned ||with ||maximizing || .
a. shareholder |wealth; |short-term
||earnings


b. shareholder ||wealth; ||shareholder ||wealth
c. short-term ||earnings; ||sales ||volume
d. short-term|earnings; |shareholder
||wealth


ANSWER: b
DIFFICULTY: Easy
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.01
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Knowledge

3. For ||an ||MNC, ||agency ||costs ||are ||typically:
a. nonexistent
b. larger ||than ||a gency ||costs ||of ||a ||small ||purely ||domestic ||firm.
c. smaller ||than ||a gency ||costs ||of |a ||small ||purely ||domestic
||firm.


d. the ||same ||as ||agency ||costs ||of ||a ||small ||purely ||domestic ||firm.
ANSWER: b
DIFFICULTY: Easy
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.01
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Knowledge

,International ||financial ||management ||13th ||edition ||by ||jeff || madura ||test ||bank
Chapter ||01: ||Multinational ||Financial ||Management: ||An ||Overview

4. Which ||of ||the ||following ||could ||reduce ||agency ||problems ||for ||an ||MNC?
a. stock ||options ||as ||managerial ||compensation
b. hostile ||takeover ||threat
c. investor |monitoring
d. all ||of ||the ||above ||are ||forms ||of ||corporate ||control ||that ||could ||reduce ||a gency ||problems ||for
||a n ||MNC.


ANSWER: d
DIFFICULTY: Moderate
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.01
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Comprehension

5. The ||valuation ||of ||an ||MNC ||should ||r ise ||when ||a n ||event ||causes ||the ||expected ||cash ||flows ||from ||foreign ||subsidiaries ||to ||
and ||when ||the ||foreign ||currencies ||denominating ||these ||cash ||flows ||are ||expected
||to || .
a. decrease;
||appreciat

e
b. increase; ||appreciate
c. decrease;
||depreciat

e
d. increase; ||depreciate
ANSWER: b
DIFFICULTY: Easy
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.04
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Comprehension

6. Which ||of ||the ||following ||theories ||identifies ||specialization ||as ||a ||r eason ||for ||international ||business?
a. theory ||of ||comparative ||advantage
b. imperfect ||markets ||theory
c. product ||cycle ||theory
d. none ||of ||the ||above
ANSWER: a
DIFFICULTY: Easy
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.02
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Knowledge

, International ||financial ||management ||13th ||edition ||by ||jeff || madura ||test ||bank
Chapter ||01: ||Multinational ||Financial ||Management: ||An ||Overview

7. Which ||of ||the ||following ||theories ||identifies ||the ||nontransferability ||of ||r esources ||as ||a ||reason ||for ||international ||business?
a. theory ||of ||comparative ||advantage
b. imperfect ||markets ||theory
c. product ||cycle ||theory
d. none ||of ||the ||above
ANSWER: b
DIFFICULTY: Easy
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.02
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Knowledge

8. Which ||of ||the ||following ||theories ||suggests ||that ||firms ||seek ||to ||penetrate ||new ||markets ||over ||time?
a. theory ||of ||comparative ||advantage
b. imperfect ||markets ||theory
c. product ||cycle ||theory
d. none ||of ||the ||above
ANSWER: c
DIFFICULTY: Easy
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.02
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Knowledge

9. An ||industry ||based ||on ||which ||of ||the ||following ||would ||most ||likely ||take ||a dvantage ||of ||lower ||costs ||in ||some ||less
||developed ||foreign ||countries?

a. assembly ||line ||production
b. specialized ||professional ||services
c. nuclear ||missile ||programs
d. development |of |more |sophisticated |computer
||technology


ANSWER: a
DIFFICULTY: Moderate
LEARNING ||OBJECTIVES: | | INFM.MADU.15.01.02
NATIONAL ||STANDARDS: | | United ||States ||- ||BUSPROG.INFM ||.MADU.15.03
STATE ||STANDARDS: United ||States ||- ||OH ||- ||DISC.INFM.MADU.15.02
KEYWORDS: Bloom's: ||Application