Making the decision to close one manufacturing plant in order to keep 49 other plants open would be a decision based upon which of the following?
Ethical lapse
Utilitarianism
Individual rights
Justice
“Caveat emptor” means which of the following?
The consumer has the right to be heard
The consumer has the right to a quality product
Let the buyer beware
Business has a responsibility to society as well as shareholders
The environmental Protection Agency was established to perform all but which of the following?
Regulate air and water pollution by manufacturers and utilities
License pesticides
Safeguard the purity of drinking water
Protect consumer rights
Which of the following regulatory agencies has the responsibility of battling job discrimination?
FTC
EPA
EEOC
SEC
Advertising practitioners must try to balance ______ with ______ and must work hard to fulfill both obligations
Marketing strategy; communication tactics
Sales revenue; communication expenses
Economic efficiency; social responsibility
Benefits to the firm; benefits to the audience
Consumers demand for a product class rather than a specific brand is called:
Market demand
Brand equity
Product demand
Generic demand
World businesses are currently spending more than
_________ in advertising.
$50 billion
$75 billion
$100 billion
$150 billion
According to economists, advertising that does not help create generic demand, but causes no harm, is classified as:
Counterproductive
Unproductive
Somewhat productive
Most productive
Currently, most advertising criticism concerns:
The content of advertising
The product being advertised
Excessive advertising exposure
Advertising’s unwanted influences on society
The advertising period in which the public began to demand truthful portrayals of products and services is called:
The Era of caveat emptor
The Era of Exaggerated claims
The Era of Public Awareness
The Era of Social Responsibility
Sometimes, advertising, communicates social messages that were unintended, such as stereotyping. This is identified as the:
Overt role of social advertising
Inadvertent role of advertising
Social role of advertising
Economic role of advertising
Three major reasons to study international finance include:
To understand a global economy
To understand the impact of global finance on businesses
To understand the European union
To make intelligent personal decisions
1, 2, and 4
Which of the following is the primary objective of a firm?
Employees’ benefits
Satisfaction of customers
Satisfaction of suppliers
Prompt payment to creditors
Maximize stockholder wealth
Financial risk involves:
Fluctuation in exchange rates
Different interest and inflation rates
Balance of payments position
1 and 2
1, 2, and 3
Three sweeping changes include:
The end of Cold War
Industrialization and growth of the developing world
The creation of the North American Trade Agreement
Increased globalization
1,2, and 4
Those companies listed below do business in more than 100 countries around the world except the following company:
IBM
General Motors
Sony
Union Pacific Railroad
BP Amoco
Managers are generally defined as:
Stockholders
Agents
Creditors
Suppliers
customers
Congress drafts a statue setting up anew agency to monitor and regulate e-commerce. The new agency is called the E-commerce Regulatory Commission (ERC). The legislation that Congress passed creating the ERC is most accurately described as ________
Delegation doctrine
Enabling legislation
Formal rulemaking power
A commission statute
Congress drafts a statue setting up anew agency to monitor and regulate e-commerce. The new agency is called the E-commerce Regulatory Commission (ERC). The ERC has a 5-member board that runs the agency
Executive branch agency
Congressional committee
Independent regulatory commission
Adjudicatory agency
Administrative Agencies have which of the following functions?
Rulemaking
Adjudication
Enforcement
All of the above
The E-commerce Regulatory Commission (ERC), described in question 1 & 2 above, promulgates a rule regarding taxation for businesses on the internet. The first the ERC is required to publish the proposed rule published is :
The Federal Register
The Code of Federal Regulations
On the internet
The Washington Post
Using the same facts as number 4 above, if the E-commerce Regulatory Commission (ERC) uses “notice and comment” rulemaking, which of the following statements is true?
The ERC is using formal rulemaking
The ERC is using informal rulemaking
The ERC is violating the procedures for rulemaking
The ERC is using hybrid rulemaking
The E-commerce Regulatory Commission (ERC) passes a rule that makes it illegal to sell medications on the internet. XYZ Pharmaceuticals is sanctioned under the new rule for selling herbal remedies on their web page. XYZ thinks that the rule violates their constitutional rights. Which of the following is the best argument in support of XYZ’s position?
The ERC has violated XYZ’s 5th Amendment rights
The ERC has violated XYZ’s 4th Amendment rights
The ERC has violated formal rulemaking requirements
The ERC rule is legal
The Internet Revenue Services (IRS), under its enabling legislation, is empowered to regulate and monitor taxes. If they issue a rule on environmental standards for toxic waste, the agency has in effect
Exhausted all administrative remedies
Failed to rely on substantial evidence
Followed its obligations and responsibilities
Behaved arbitrarily and capriciously
As a result of a new rule issued by the E-commerce Commission (ERC) can no longer sell CAT scan equipment on the internet. You were thinking of entering the CAT scan market and wanted to be able to use the internet in the future. You file a lawsuit in federal district court, contesting the rule. Which of the following is the agency’s best argument in defense against your lawsuit?
You do have standing to sue not
You have exhausted your remedies
You do not have substantial evidence in the record
You have behaved arbitrarily and capriciously
Which of the following statement is incorrect regarding President control of administrative agencies?
Political appointees must resign when the President asks them to do so.
The president appoints commissions for terms, but cannot control their actions after appointment
The President can force Congress to fire members of commissions who run agencies
The office of Management and Budget (OMB) can perform and economic analysis of each agency’s proposed rules
Which of the following is not one of seven principles of global finance?
Market imperfection
Risk-return tradeoff
Portfolio effect
Comparative advantage
Company advantage
Incentives for multinational company managers does not include the following:
Stock options
Bonuses
Perquisites
Salary increases
Vacation
Environmental factors affecting international operations are as follows except:
Foreign customs
Foreign economic factors
Foreign political situations
Foreign legal aspect
International distance
Three major risks in international business are:
Political, financial and weather
Economic, political and people
Political, financial and regulatory
Accounting, management and information
Marketing, ethics and political
Conflicts of interest for multinational corporations do not include:
The interests of sovereign governments may be different
The goals of multinationals are divergent from host countries
Some conflicts may exist within multinational subsidiaries
Multinational companies may conflict with local laws
Multinational managers live in different time zones
To maximize shareholder value, US companies have increased:
Profit margin on sales and asset turnover
Asset dispositions
Dividend and share purchases
The utilization rate of assets
Mergers and acquisitions
The conflict between owners, employees, suppliers, and customers of a company is known as:
Regulatory risk
Problem of agency
Conflict of multiple environments
Conflict of interests
None of the above
The main differences between domestic and international companies from a financial manager’s point of view are largely due to differences in:
Risks
National laws
Economic factors
Political factors
All of the above
A global company is an organization that attempt to:
Has a worldwide presence in its market
Integrate its operation worldwide
Standardize operations in one or more of the company’s functional areas.
1 and 2
1, 2, and 3
Corporate governance is often narrowly defined as the prudent exercise of ownership rights toward the goal of increased:
Shareholder value
Profit
Profit margin on sales
Asset turnover
Sales volume
The most common form of shareholder activism includes:
A shareholder proposal for proxy fight
Direct negotiation with management
Public targeting of a corporation
1, 2, and 3
1 and 3 only
The OECD Principles of Corporate Governance covers:
The rights of shareholders
The equitable treatment of shareholders
The responsibilities of the board
Disclosure and transparency
The rights of suppliers
Which of these organizations is responsible for tariffs and trade?
TAFT
NAFTA
GATT
Both 1 & 2
How many percent does tariffs from textile produced from third world country?
25%
50%
75%
35%
Which reason is a valuable tool that makes business globally easier and faster?
Concord jet airplane
Telephone
Computer
Internet
The Multinational Corporation has tasks:
All the answers below are correct
Harmonize worldwide business activities
To react well enough to the terms of separate nations
Both 2 & 3 are correct
What is the strength and weakness of MNCs?
Amorality
Moral
Immoral
Informal
Pressure of U.S. firms to do global expenditure has been pressured by __________ rather than by National constraint.
International
President Clinton
MNC
None of the above
U.S. business relies to a greater extent on foreign sources. What is/are they?
Raw material
Capital
Technology
All of the above
What is GATT abbreviated from?
Global association of tax and transportation
Global agreement on trade and tax
General agreement on tariffs and trade
General agreement on trade and tax
What is GATT developed for?
Government action
Free trade market
Free from tariffs.
Both 2 and 3 are correct
Capital flow in a global environment is affected by:
National Policy making
National Gross product
National Product
National Capital
What condition(s) that forced the MNC to readjust its strategy?
Continual loss of operating earnings
The weakening of assumption on immediate ventures.
None of the above
Both 1 and 2 are correct
Why would a firm be recommended to do their production in multiple sites?
The diversity of knowledge
To compete effectively
Because it owns the sites
Because of the top management’s judgement