Student Center | Instructor Center | Information Center | Home

Financial and Managerial Accounting: The Basis for Business Decisions, 12/e

Jan R. Williams, University of Tennessee
Susan F. Haka, Michigan State University
Mark S. Bettner, Bucknell University
Robert F. Meigs

Global Business and Accounting

Multiple Choice Quiz

Please answer all questions


1	MTH Electric Trains, Inc., located in Columbia, Maryland, markets and distributes toy trains produced exclusively for the company by firms in Korea and China. Which of the following best characterizes MTH Electric Trains' approach to globalization?
		A)	Exporting.
		B)	A joint venture.
		C)	International licensing.
		D)	Global sourcing.


2	A company practices shared-decision making in its management, i.e. all employees and managers participate in important resource allocation decisions. When establishing joint ventures internationally, this management philosophy is most likely to be successful in a culture characterized by:
		A)	Low individualism and low uncertainty avoidance.
		B)	Low individualism and high uncertainty avoidance.
		C)	High individualism and low uncertainty avoidance.
		D)	High individualism and high uncertainty avoidance.


3	An amount in British pounds may be translated into an equivalent amount in U.S. dollars by:
		A)	Multiplying the amount in pounds by the exchange rate stated in U.S. dollars.
		B)	Multiplying the amount in pounds by the exchange rate stated in pounds.
		C)	Dividing the amount in pounds by the exchange rate stated in U.S. dollars.
		D)	Dividing the amount in pounds by 3.14.


4	Wilson Communications is an American company that does business with several Mexican corporations. In recent months, Wilson Communications has been reporting losses from declines in the exchange rate for the Mexican peso. This suggests that Wilson Communications' business with the Mexican corporations consists of:
		A)	Credit sales at prices stated in pesos.
		B)	Credit sales at prices stated in U.S. dollars.
		C)	Credit purchases at prices stated in U.S. dollars.
		D)	Credit purchases at prices stated in pesos.


5	A portion of product costs incurred to expedite the completion of official paperwork in a foreign country is referred to as:
		A)	Influence peddling.
		B)	A facilitating payment.
		C)	An illegal bribe.
		D)	Graft.

2002 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.