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Questions
Q:
Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. Which of the following statements is true?A) Under both the capture theory and the share -the-gains, share-the-pain theory profits will decrease.B) An increase in price will occur quicker in the share -the gains, share-the-pain theory than the capture theory.C) An increase in price will occur quicker in the capture theory than the share -the-gains, share-the-pain theory.D) In the capture theory there will be an increase in price but not in the share -the-gains, share-the-pain theory.
Q:
In relationship-oriented cultures such as France, Mexico, and Japan, sales representatives
A) are available to fill vacant positions perennially.
B) tend not to be highly respected.
C) are better paid than their U.S. counterparts.
D) lack proper knowledge of their culture.
E) are respected and held in high esteem.
Q:
Nike had income of $350 million and average invested assets of $2,000 million. Its ROA is:
A.1.8%.
B.35%.
C.17.5%.
D.5.7%.
E.3.5%.
Q:
Product compatibility applies to products of different firms thatA) are complementary. B) are substitutable.C) have no network effects. D) none of the above
Q:
What is true of local nationals who are hired to sell a company's products?
A) They are not keen on maintaining a cordial relationship at the home office.
B) They lack the knowledge of local culture and prevalent practices.
C) They are better able to lead a company through the maze of unfamiliar distribution systems.
D) They do not communicate with subordinates and customers directly.
E) They normally work for a foreign company in a third country.
Q:
Reebok had income of $150 million and average invested assets of $1,800 million. Its return on assets is:
A.8.3%.
B.83.3%.
C.12%.
D.120%.
E.16.7%.
Q:
Firms that sell information products experience relatively high fixed costs but, once they have produced the first unit, canA) sell additional units at a loss, or above cost.B) provide expensive information products to consumers.C) sell additional units at a relatively low cost per unit.D) experience short-run diseconomies of scale.
Q:
What is most likely to be a reason that headquarters personnel tend to ignore the advice of local nationals?
A) Foreign nationals are not keen on keeping up with current best practices.
B) Foreign nationals lack the understanding of how home-office politics work.
C) Foreign nationals have a good grasp of the local culture and prevalent practices.
D) Foreign nationals cannot build close contact with subordinates and customers.
E) Foreign nationals have superior technical expertise, but are not good at relationship management.
Q:
Return on assets is:
A.Also called return on investment.
B.ROA.
C.Computed by dividing net income by average total assets.
D.Used in helping evaluate management.
E.All of these.
Q:
Which of the following products is most likely to be sold in a monopolistically competitive market?A) fast food B) coal C) wheat D) electricity
Q:
What is the main disadvantage of hiring local nationals in the sales force?
A) Headquarters personnel tend to ignore the advice of local nationals.
B) Most local nationals are costly to maintain.
C) Poaching of experienced personnel by competitor companies increases.
D) Cultural differences lead to communication issues with customers.
E) Lack of familiarity with distribution systems and referral networks plagues local nationals.
Q:
What is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates?
A) They are more efficient in communicating with and influencing headquarters' personnel.
B) They cost the firm less to maintain.
C) They add more to the prestige of the product line in the eyes of foreign customers.
D) They have greater technical expertise.
E) They are less likely to accept any form of bribe.
Q:
If assets are $365,000 and equity is $120,000, then liabilities are:
A.$120,000.
B.$245,000.
C.$365,000.
D.$485,000.
E.$610,000.
Q:
In the above figure, if the firm is producing Q 2 units at a price P2, it shouldA) increase output and decrease price. B) decrease output and increase price.C) not change output or price. D) shut down.
Q:
What is an advantage of hiring local nationals in the sales force?
A) They are more efficient in communicating with and influencing headquarters' personnel.
B) They are more knowledgeable about a country's business structure and systems.
C) They add to the prestige of the product line in the eyes of foreign customers.
D) They are likely to have superior technical expertise.
E) They do not accept any form of bribe.
Q:
If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?
A.Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
B.Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.
C.Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.
D.There would be no effect on the accounts because the accounts are affected by the same amount.
E.None of these.
Q:
An industry in which an increase in industry output is accompanied by an increase in long -run per-unit costs is a(n)A) increasing-cost industry. B) constant-cost industry.C) break-even cost industry. D) decreasing-cost industry.
Q:
When recruiting sales and marketing personnel for an international sales force, there is a preference in favor of the locals. The reason for this is most likely that local nationals
A) transcend both cultural and legal barriers.
B) have supreme technological expertise.
C) are more highly trained than expatriates.
D) have a better understanding of home-office politics.
E) do not accept bribes.
Q:
Refer to the above table. The table represents information on the costs for Ajax Corporation.Ajax operates in a perfectly competitive market and the price of the product is $7. What does profit equal when quantity equals 2?A) $14 B) -$2 C) $16 D) $2
Q:
The primary difference between professional expatriates and virtual expatriates is that
A) professional expatriates can avoid misunderstandings that arise from cross-cultural communications.
B) for virtual expatriates, building close contact with customers is much easier.
C) professional expatriates do not incur any extra expense to the company.
D) for virtual expatriates, establishing a good working relationship with subordinates is much easier.
E) virtual expatriates work from their home branch and do not relocate to the assignment country.
Q:
If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:
A.Increased $22,000.
B.Decreased $22,000.
C.Increased $89,000.
D.Decreased $156,000.
E.Increased $156,000.
Q:
Use the above figure. The ATC at output 5 isA) $25.00. B) $2.00. C) $3.00. D) $5.00.
Q:
Horatio is a virtual expatriate based in the U.S., managing operations in France and Belgium for his company. What disadvantage of working as a virtual expatriate is Horatio likely to experience?
A) He may find it difficult to build close contact with subordinates and customers.
B) His family will need to be uprooted.
C) He will risk losing out on promotions at corporate headquarters.
D) He will likely lack the understanding of how home-office politics influence decisions.
E) The top personnel at the headquarters will tend to ignore his advice.
Q:
Which method of corporate finance is used the most? Why?
Q:
From an international firm's perspective, what is an advantage associated with virtual assignments?
A) Sales personnel can avoid health risks involved in flying frequently to foreign countries.
B) Customer relationship structures may be improved due to direct customer interaction.
C) The extra expense involved in an actual executive move may be avoided.
D) Problems related to low morale of personnel due to living in hotels can be avoided.
E) Misunderstandings due to lack of cultural skills may be completely eliminated.
Q:
Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:
A.Total assets decrease and equity increases.
B.Both total assets and total liabilities decrease.
C.Total assets, total liabilities, and equity are unchanged.
D.Both total assets and equity are unchanged and liabilities increase.
E.Total assets increase and equity decreases.
Q:
Which of the following is not a legal organization of a firm?A) Corporation B) PartnershipC) Entrepreneurship D) Proprietorship
Q:
What is an advantage of being a virtual expatriate?
A) They can eliminate the problem of time zone differences.
B) They can establish closer relationships with their customers in the foreign country.
C) Their families do not have to be uprooted from their home country.
D) They possess complete local knowledge about cultural practices in the foreign country.
E) They can avoid cross-cultural communications problems with their foreign colleagues.
Q:
Refer to the above figures. Which panel best represents an indifference curve?A) Panel A. B) Panel B. C) Panel C. D) Panel D.
Q:
Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?
A.Assets increase by $75,000 and expenses increase by $75,000.
B.Assets increase by $75,000 and expenses decrease by $75,000.
C.Liabilities increase by $75,000 and expenses decrease by $75,000.
D.Assets decrease by $75,000 and expenses decrease by $75,000.
E.Assets increase by $75,000 and liabilities increase by $75,000.
Q:
Jorge, an American citizen, works as the sales manager at an office supply company. He is posted at the company headquarters in the U.S. and manages operations in China, making frequent and lengthy visits to conduct business meetings with his colleagues there. Jorge may be considered to be a
A) repatriate.
B) virtual expatriate.
C) third-country national.
D) professional expatriate.
E) local sales manager.
Q:
Slices of PizzaTotal UtilityMarginal Utility150 290 3120 4130 5137 6120 In the above table, what is the marginal utility of the second slice of pizza consumed?A) 10 B) 90 C) 30 D) 40
Q:
How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?
A.+$10,000 accounts receivable, -$10,000 accounts payable.
B.+$10,000 accounts receivable, +$10,000 accounts payable.
C.+$10,000 accounts receivable, +$10,000 cash.
D.+$10,000 accounts receivable, +$10,000 revenue.
E.+$10,000 accounts receivable, -$10,000 revenue.
Q:
What best defines virtual expatriates?
A) They stay and work abroad for a short period of one to two months and then return to their home country.
B) They work in a foreign culture and blend to such an extent that they may more closely resemble a local than an expatriate.
C) They work abroad in one country after another for the greater part of their career.
D) They are expatriates from their own countries working for a foreign company in a third country.
E) They manage operations in foreign countries but do not move there.
Q:
Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?
A.Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.
B.Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.
C.Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.
D.Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.
E.Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.
Q:
Which of the following is more likely to have perfectly elastic or nearly perfectly elastic demand?
A) a textbook required for an economics course
B) the guitar produced by a master craftsman
C) milk produced by a Wisconsin dairy farmer
D) the services offered by the only allergist in the community
Q:
Helmut, a German national, works as a sales manager for Grey Oil Corporation in the Middle East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information, we can say that Helmut is a
A) repatriate manager.
B) virtual expatriate.
C) third-country national.
D) professional expatriate.
E) native salesperson.
Q:
An exchange of value between two entities is called:
A.The accounting equation.
B.Recordkeeping or bookkeeping.
C.A business transaction.
D.An asset.
E.Net Income.
Q:
If the absolute price elasticity of demand for good Y is 0.75, when there is a 30 percent increase in price, we can conclude that quantity demandedA) has fallen by 35.0 percent. B) has fallen by 10.4 percent. C) has fallen by 22.5 percent. D) has fallen by 40.0 percent.
Q:
What is a characteristic of a professional expatriate?
A) They work abroad for a period of one month and then return to the home office.
B) They work for a foreign company in a third country for a short period.
C) They work abroad in country after country for the greater part of their careers.
D) They work in their home branches for most of their careers.
E) They manage operations in other countries but do not move there.
Q:
What is a strategy that international companies use to encourage sales personnel to accept foreign assignments?
A) International experience is considered important to join top management.
B) It is made mandatory for all sales personnel to take up expatriate positions.
C) Part of the headquarters of the company is set up at the foreign location.
D) Companies unfailingly provide employment for the employee's spouse in a top position.
E) Legal obligations are imposed on the expatriate sales representatives.
Q:
Assets created by selling goods and services on credit are:
A.Accounts payable.
B.Accounts receivable.
C.Liabilities.
D.Expenses.
E.Equity.
Q:
In economic analysis, the optimal level of pollution
A) is always zero.
B) arises at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
C) occurs at the point at which demand crosses the private cost supply curve.
D) should be determined by the private market without any government intervention.
Q:
What is the most likely reason for Americans to seek third-country nationals for their international sales forces?
A) They transcend legal and cultural barriers.
B) They are thoroughly knowledgeable about a country's business structure.
C) They are often able to speak several languages.
D) They cost less to maintain than a staff of local nationals.
E) They can lead a company better through unfamiliar referral networks than local nationals.
Q:
On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year?
A.$8,300
B.$13,050
C.$20,500
D.$31,100
E.$40,400
Q:
Under the Social Security program currently in existence, A) benefits are based on need.B) benefits are determined by whether or not one contributed to the system.C) benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500.D) benefits are guaranteed to be no lower for future retirees than for current retirees.
Q:
What is a disadvantage associated with a sales force consisting of expatriate salespeople?
A) adverse effect on the prestige of the product
B) inability to effectively communicate and influence headquarters' personnel
C) lack of technological expertise
D) inadequate knowledge of the company
E) large cultural barriers
Q:
The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?
A.$900,000.
B.$700,000.
C.$500,000.
D.$200,000.
E.It is impossible to determine unless the amount of this owners' investment is known.
Q:
Which of the following is FALSE regarding a monopsonist?A) The monopsonist is the only buyer in a market.B) The monopsonist faces an upward sloping labor supply curve.C) The monopsonist faces an upward sloping labor demand curve. D) The monopsonist faces the entire market labor supply curve.
Q:
What is an advantage of a sales force consisting of expatriate sales representatives?
A) They possess greater technical training.
B) They transcend cultural and legal barriers.
C) They cost less to be maintained in a foreign location.
D) The cultural gap can be easily narrowed.
E) They have a better understanding of distribution channels.
Q:
The balance sheet equation is:
A.Revenues minus expenses equals net income.
B.Debits equal credits.
C.The bookkeeping phase of accounting.
D.Another name for the accounting equation.
E.Assets minus liabilities and equity.
Q:
If a firm is a union shop, thenA) a worker may elect to either join or not join the union.B) only workers who have been union members for two years may be employed. C) only union members may be employed by the firm.D) a non-union worker may be hired but must join the union within a certain time period.
Q:
When is an expatriate sales force most likely to have an advantage over a native sales force?
A) when selling consulting services
B) when selling in relationship-oriented countries
C) when the product caters to a niche market
D) when the product is highly technical in nature
E) when selling does not require effective communication skills
Q:
Derived demand isA) a derivative of the demand curve.B) the demand for goods and services produced by companies using scarce resources.C) the demand for advertising to increase the sales of the product.D) the demand for the factors of production that are used to produce goods and services.
Q:
Distributions by a business to its owners are called:
A.Withdrawals.
B.Expenses.
C.Assets.
D.Retained earnings.
E.Net Income.
Q:
An expatriate sales force is likely to be
A) most efficient in relationship-based cultures.
B) unsuitable when a company wants to sell high-technology products.
C) lacking in knowledge regarding the product line of the company.
D) received unfavorably in information-oriented cultures.
E) the best choice when selling requires an extensive background of information.
Q:
A payment to an owner is called a(n):
A.Liability.
B.Withdrawal.
C.Expense.
D.Contribution.
E.Investment.
Q:
Refer to the above table. The table represents information on the costs for Ajax Corporation.Ajax operates in a perfectly competitive market and the price of the product is $7. What will be the value of total revenue when quantity sold equals 2?A) $7 B) $14 C) $21 D) $16
Q:
The largest personnel requirement in foreign countries for most companies is in the
A) management team.
B) finance department.
C) information technology team.
D) human resources department.
E) sales team.
Q:
Which of the following statements is true about assets?
A.They are economic resources owned or controlled by the business.
B.They are expected to provide future benefits to the business.
C.They appear on the balance sheet.
D.Claims on them can be shared between creditors and owners.
E.All of these.
Q:
Use the above figure. The AFC at output level 20 isA) $10.00. B) $0.50. C) $3.00. D) $1.00.
Q:
A multinational company with its headquarters in the U.S. wants to sell its new high-technology product in Germany. For the most effective selling, the sales force for this company would probably consist mostly of
A) local German nationals.
B) illegal aliens living in the US.
C) temporary, freelancing German sales personnel.
D) American expatriates.
E) third-culture people from Japan.
Q:
The excess of expenses over revenues for a period is:
A.Net assets.
B.Equity.
C.Net loss.
D.Net income.
E.A liability.
Q:
Suppose a firm wanted to go out of business. The firm sells all its assets and pays off everything it owes to creditors. The stockholders would receive
A) nothing.
B) their annual dividend payment.
C) one half of the funds; the other half of the funds goes to bondholders.
D) the rest of the funds, after everyone who has a claim against the firm is paid.
Q:
In countries like Japan, a sales force is likely to be most effective if it consists mostly of
A) professional expatriates.
B) local nationals.
C) virtual expatriates.
D) third-world nationals.
E) expatriates from Asian countries.
Q:
Another name for equity is:
A.Net income.
B.Expenses.
C.Net assets.
D.Revenue.
E.Net loss.
Q:
The higher are a firmʹs risk-corrected returns, A) the lower are its labor costs.B) the higher are its opportunity costs.C) the more advantage it has in obtaining investor financing.D) the more difficulty it will have financing its expansion plans.
Q:
Countries such as Germany allow for greater use of expatriates in international sales forces. What is most likely the reason for this?
A) Germany is a member of the World Trade Organization.
B) Germany has a relationship-oriented culture.
C) The German language is easy to master.
D) Germany has an information-oriented culture.
E) Germany is a member of the United Nations.
Q:
If assets are $99,000 and liabilities are $32,000, then equity equals:
A.$32,000.
B.$67,000.
C.$99,000.
D.$131,000.
E.$198,000.
Q:
Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,A) an indifference curve linking the two goods will have a constant slope. B) an indifference curve will be convex to the origin.C) the demand curves for these goods will be positively sloped. D) the demand curves for these goods will be horizontal.
Q:
Relationship marketing focuses on
A) the short-term effort.
B) maintaining an atmosphere of trust with the sales manager.
C) involving all members of the sales team in the sale.
D) treating each sale as a one-time event.
E) building long-term alliances.
Q:
Accounting
A.Is an information and measurement system.
B.Identifies, records, and communicates information about business activities
C.Helps people make better decisions
D.Involves interpreting information and designing information systems to provide useful reports that monitor and control a company's activities.
E.All of these
Q:
What is the final link in a company's marketing and sales efforts?
A) the chairperson
B) the marketing manager
C) the sales representative
D) the customer
E) the sales manager
Q:
If marginal utility is zero,A) total utility increases at a decreasing rate.B) total utility increases at an increasing rate. C) total utility is at a maximum.D) people will not consume the good even if the price is zero.
Q:
What is a company's most direct tie to the customer?
A) the product
B) the salesperson
C) the parent company
D) the retail outlet
E) the distributor
Q:
Revenues are:
A.The same as net income.
B.The excess of expenses over assets.
C.Resources owned or controlled by a company
D.The gross increase in equity from a company's earning activities.
E.The costs of assets or services used.
Q:
If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will beA) less than one. B) less than zero. C) greater than one. D) equal to zero.
Q:
Net income:
A.Occurs when revenues exceed expenses.
B.Is the same as revenue.
C.Equals resources owned or controlled by a company.
D.Occurs when expenses exceed assets.
E.Represents assets taken from a company for an owner's personal use.
Q:
Most companies today limit their search for senior-level executive talent to their home countries.
Q:
Which of the following statements about demand and price elasticity of demand is TRUE?A) As the demand curve has a positive slope, the price elasticity of demand is positive.B) As the demand curve has a negative slope, the price elasticity of demand is negative. C) As the demand curve has a positive slope, the price elasticity of demand is negative. D) As the demand curve has a negative slope, the price elasticity of demand is positive.