BMAL 590 GLOBAL DIMENSIONS
OF BUSINESS EXAM REVIEW
QUESTIONS AND ANSWERS
Which of the following is not an argument in favor of decentralization in knowledge
management but instead is an argument in favor of centralization? - Answer-Sufficient
power for corporate-level managers to initiate necessary actions
Which would be more characteristic of conglomerates? - Answer-B and C above
Which of the following is not an argument in favor of centralization in knowledge
management but instead is an argument in favor of decentralization? - Answer-Permits
greater speed, flexibility, and innovation
Greenfield operations refers to: - Answer-Wholly owned subsidiaries
Which of the following is not a legal means of signaling? - Answer-Direct discussion of
reduced rivalry with competitors
The strategic goal of ________ involves going after countries that offer the highest price
- Answer-Market seeking
Unique to international competition are the pressures for local responsiveness, which
are reflected in - Answer-All of the above
Sources of operational synergy include - Answer-All of the above
Non-equity modes of entry typically involve: - Answer-Exports and contractual
agreements
Localization (multi-domestic) strategy involves all of the following except - Answer-
Global standardization strategy is the same as a multi-domestic strategy
As firms expand into more countries, they should recognize: - Answer-Foreign firms
primarily deploy overwhelming resources and capabilities that offset the liability of
foreigness
Which of the following does not exemplify a trade barrier? - Answer-Nationalization
Which of the following does not include first mover advantages? - Answer-Successful
clashes with dominat firms in domestic markets
, As firms expan into more countries, they should recognize that —— - Answer-Foreign
firms primarily deploy overwhelming resources and capabilities that offset the liability of
foreignness
Who does the resource-based view focus on? - Answer-The firms internal strengths and
weakness.
What does the institutional-based view focus on? - Answer-Goverment and society
forces
Global strategies have reached new levels of significance because of what three
defining events? - Answer-Terrorist attacks, anti-globalization protest, and corporate
crisis in the U.S. and Asia.
The key input required to build a cash budget is - Answer-The firm's sales forecast
Which of the following is NOT a cash disbursement? - Answer-Depreciation expenses
Examples of cash disbursements - Answer-Rent and lease payments, interest
payments, payments of accounts payable
Most pro forma statements begin with a sales forecast. One approach to deriving a
sales forecast is the top-down approach. Top-down sales forecast rely heavily on
_____. - Answer-Macroeconomic And industry forecast
A speed up in ____ will ______ a firms financial needs whereas; a slow down in ______
will _______ a firm's financing needs. - Answer-Payments, increase, collections,
increase.
Most firms when planning for growth focus on - Answer-Meeting sales target growth
rates
Which of the following is not generally considered to be an advantage of term loans
over publicly issue bonds? - Answer-Liquidity or how easily investor can trade them in
the secondary markets
Which of the following statements is false? - Answer-The term Eurobond specifically
applies to any foreign bonds denominator in the US currency.
Which of the following is not an example of a financial asset - Answer-Inventory
Which of the following is not a source of equity on a firms balance sheet? - Answer-
property, plant, and equipment
OF BUSINESS EXAM REVIEW
QUESTIONS AND ANSWERS
Which of the following is not an argument in favor of decentralization in knowledge
management but instead is an argument in favor of centralization? - Answer-Sufficient
power for corporate-level managers to initiate necessary actions
Which would be more characteristic of conglomerates? - Answer-B and C above
Which of the following is not an argument in favor of centralization in knowledge
management but instead is an argument in favor of decentralization? - Answer-Permits
greater speed, flexibility, and innovation
Greenfield operations refers to: - Answer-Wholly owned subsidiaries
Which of the following is not a legal means of signaling? - Answer-Direct discussion of
reduced rivalry with competitors
The strategic goal of ________ involves going after countries that offer the highest price
- Answer-Market seeking
Unique to international competition are the pressures for local responsiveness, which
are reflected in - Answer-All of the above
Sources of operational synergy include - Answer-All of the above
Non-equity modes of entry typically involve: - Answer-Exports and contractual
agreements
Localization (multi-domestic) strategy involves all of the following except - Answer-
Global standardization strategy is the same as a multi-domestic strategy
As firms expand into more countries, they should recognize: - Answer-Foreign firms
primarily deploy overwhelming resources and capabilities that offset the liability of
foreigness
Which of the following does not exemplify a trade barrier? - Answer-Nationalization
Which of the following does not include first mover advantages? - Answer-Successful
clashes with dominat firms in domestic markets
, As firms expan into more countries, they should recognize that —— - Answer-Foreign
firms primarily deploy overwhelming resources and capabilities that offset the liability of
foreignness
Who does the resource-based view focus on? - Answer-The firms internal strengths and
weakness.
What does the institutional-based view focus on? - Answer-Goverment and society
forces
Global strategies have reached new levels of significance because of what three
defining events? - Answer-Terrorist attacks, anti-globalization protest, and corporate
crisis in the U.S. and Asia.
The key input required to build a cash budget is - Answer-The firm's sales forecast
Which of the following is NOT a cash disbursement? - Answer-Depreciation expenses
Examples of cash disbursements - Answer-Rent and lease payments, interest
payments, payments of accounts payable
Most pro forma statements begin with a sales forecast. One approach to deriving a
sales forecast is the top-down approach. Top-down sales forecast rely heavily on
_____. - Answer-Macroeconomic And industry forecast
A speed up in ____ will ______ a firms financial needs whereas; a slow down in ______
will _______ a firm's financing needs. - Answer-Payments, increase, collections,
increase.
Most firms when planning for growth focus on - Answer-Meeting sales target growth
rates
Which of the following is not generally considered to be an advantage of term loans
over publicly issue bonds? - Answer-Liquidity or how easily investor can trade them in
the secondary markets
Which of the following statements is false? - Answer-The term Eurobond specifically
applies to any foreign bonds denominator in the US currency.
Which of the following is not an example of a financial asset - Answer-Inventory
Which of the following is not a source of equity on a firms balance sheet? - Answer-
property, plant, and equipment
