WGU D080 OA Study Guide Exam 99 Questions
with Verified Answers
Enhanced core business activities - CORRECT ANSWER A company would like to
obtain the benefits of outsourcing and focus solely on marketing activities and
research and development. Which advantage is this company hoping to achieve?
Required to arrange for transportation - CORRECT ANSWER A company is
considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy?
Multinational production - CORRECT ANSWER A car manufacturing company
manufacturers tires in Countries A, B, and C. Country A has significant political
turmoil that has resulted in a lengthy labor strike. Countries B and C have ramped
up production resulting in sustained tire production for the company.
Which practice has the company used to optimize its production efficiency?
Study the International Financial Reporting Standards (IFRS) online - CORRECT
ANSWER A company in the United States is considering a joint venture with a
French supplier and needs to learn about the accounting standards used in
France. How should the U.S. company approach this situation?
,Transfer - CORRECT ANSWER A multinational company moves key production
assets to a country with lower tax rates to avoid paying more taxes in the home
country.
Which type of pricing should be used to reduce taxes during production?
Loss of control - CORRECT ANSWER A German company is considering outsourcing
the manufacturing process to Japan. Some of the executive board directors are
concerned that the Japanese company may not follow the exact production
processes the German company normally uses. Which risk represents this
concern?
Required to arrange for transportation - CORRECT ANSWER A company is
considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy?
Crowdsourcing - CORRECT ANSWER Which source of funding uses technology
platforms to invite consumers to invest small amounts in support of a business
idea or venture?
Currency risk - CORRECT ANSWER Which type of risk refers to the impact of
random change in the value of one currency with respect to other currencies?
Hedging - CORRECT ANSWER Which term defines using currency derivatives to
reduce potential currency risks due to currency exchange rate movement that
could lead to losses for a firm?
, A company has achieved a monetary advantage by using a fronting loan with a
subsidiary in a country with a low corporate income tax rate. Which type of tax
situation in this country allows the company to achieve this monetary advantage?
- CORRECT ANSWER A company has achieved a monetary advantage by using a
fronting loan with a subsidiary in a country with a low corporate income tax rate.
Which type of tax situation in this country allows the company to achieve this
monetary advantage?
It leads to developing free trade policies with strategic partners. - CORRECT
ANSWER Two countries agree to open their borders to international business
transactions with one another without tariffs.
How does this affect global business?
It will create barriers to entry for other nations. - CORRECT ANSWER A country
uses its established technology infrastructure to produce a good. What is the
impact of this infrastructure on trade?
The shift of jobs away from low comparative advantage industries - CORRECT
ANSWER What was the economic impact of the North American Free Trade
Agreement (NAFTA)?
Country B seeks to protect its economy and give it the opportunity for long-term
expansion. - CORRECT ANSWER A company that is located in Country A would like
to sell products in Country B. The government of Country B is pushing for a tariff-
based international trade agreement on the product. What is the reasoning
behind Country B's decision?
with Verified Answers
Enhanced core business activities - CORRECT ANSWER A company would like to
obtain the benefits of outsourcing and focus solely on marketing activities and
research and development. Which advantage is this company hoping to achieve?
Required to arrange for transportation - CORRECT ANSWER A company is
considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy?
Multinational production - CORRECT ANSWER A car manufacturing company
manufacturers tires in Countries A, B, and C. Country A has significant political
turmoil that has resulted in a lengthy labor strike. Countries B and C have ramped
up production resulting in sustained tire production for the company.
Which practice has the company used to optimize its production efficiency?
Study the International Financial Reporting Standards (IFRS) online - CORRECT
ANSWER A company in the United States is considering a joint venture with a
French supplier and needs to learn about the accounting standards used in
France. How should the U.S. company approach this situation?
,Transfer - CORRECT ANSWER A multinational company moves key production
assets to a country with lower tax rates to avoid paying more taxes in the home
country.
Which type of pricing should be used to reduce taxes during production?
Loss of control - CORRECT ANSWER A German company is considering outsourcing
the manufacturing process to Japan. Some of the executive board directors are
concerned that the Japanese company may not follow the exact production
processes the German company normally uses. Which risk represents this
concern?
Required to arrange for transportation - CORRECT ANSWER A company is
considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy?
Crowdsourcing - CORRECT ANSWER Which source of funding uses technology
platforms to invite consumers to invest small amounts in support of a business
idea or venture?
Currency risk - CORRECT ANSWER Which type of risk refers to the impact of
random change in the value of one currency with respect to other currencies?
Hedging - CORRECT ANSWER Which term defines using currency derivatives to
reduce potential currency risks due to currency exchange rate movement that
could lead to losses for a firm?
, A company has achieved a monetary advantage by using a fronting loan with a
subsidiary in a country with a low corporate income tax rate. Which type of tax
situation in this country allows the company to achieve this monetary advantage?
- CORRECT ANSWER A company has achieved a monetary advantage by using a
fronting loan with a subsidiary in a country with a low corporate income tax rate.
Which type of tax situation in this country allows the company to achieve this
monetary advantage?
It leads to developing free trade policies with strategic partners. - CORRECT
ANSWER Two countries agree to open their borders to international business
transactions with one another without tariffs.
How does this affect global business?
It will create barriers to entry for other nations. - CORRECT ANSWER A country
uses its established technology infrastructure to produce a good. What is the
impact of this infrastructure on trade?
The shift of jobs away from low comparative advantage industries - CORRECT
ANSWER What was the economic impact of the North American Free Trade
Agreement (NAFTA)?
Country B seeks to protect its economy and give it the opportunity for long-term
expansion. - CORRECT ANSWER A company that is located in Country A would like
to sell products in Country B. The government of Country B is pushing for a tariff-
based international trade agreement on the product. What is the reasoning
behind Country B's decision?
