Test Bank for International Financial Management, 14th Edition, Jeff Madura
94 views 0 purchase
Course
Healthcare And Nursing
Institution
Harvard University
Book
International Financial Management
1. The commonly accepted goal of an MNC is to:
a. maximize short-term earnings.
b. maximize shareholder wealth.
c. minimize risk.
d. maximize short-term earnings AND minimize risk.
e. maximize international sales.
ANSWER: b
2. With regard to corporate goals, an MNC is mostly concerned with m...
Solution Manual For International Financial Management, 14th Edition by Jeff Madura | Complete Verified Chapter's |
Solutions For International Financial Management 14th Edition by Jeff Madura ISBN 9780357130667 Updated 2024/2025 A+
Solution Manual For International Financial Management 14th Edition by Jeff Madura| Complete Verified Chapter's |
All for this textbook (14)
Written for
Harvard University
Healthcare And Nursing
All documents for this subject (27)
Seller
Follow
Tracy99
Reviews received
Content preview
Test Bank for
International Financial
Management, 14th
Edition, Jeff Madura,
ISBN-10: 0357130545,
ISBN-13: 9780357130544
, 1. The commonly accepted goal of an MNC is to:
a. maximize short-term earnings.
b. maximize shareholder wealth.
c. minimize risk.
d. maximize short-term earnings AND minimize risk.
e. maximize international sales.
ANSWER: b
2. With regard to corporate goals, an MNC is mostly concerned with maximizing ____, and 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
3. For an MNC, agency costs are typically:
a. nonexistent.
b. larger than agency costs of a small purely domestic firm.
c. smaller than agency costs of a small purely domestic firm.
d. the same as agency costs of a small purely domestic firm.
ANSWER: b
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 these are forms of corporate control that could reduce agency problems for an MNC.
ANSWER: d
5. The valuation of an MNC should rise when an event causes the expected cash flows from foreign subsidiaries to ____
and when the foreign currencies denominating these cash flows are expected
to ____.
a. decrease; appreciate
b. increase; appreciate
c. decrease; depreciate
d. increase; depreciate
ANSWER: b
6. Which of the following theories identifies specialization as a reason for international business?
a. theory of comparative advantage
b. imperfect markets theory
c. product cycle theory
d. None of these are correct.
ANSWER: a
7. Which of the following theories identifies the nontransferability of resources as a reason for international business?
a. theory of comparative advantage
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Tracy99. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
