Q&A Hero

Q: Which of the following is most likely to be a monopolistically competitive firm?A) Smart phone producer B) Cell phone service providerC) College textbook publisher D) Computer software maker

Q: Claudia is being transferred to a foreign assignment that will last 3 months. Her family is not accompanying her, so the company is paying her a premium, which is called a A) fringe benefit. B) pension plan. C) displacement reserve. D) special assessment. E) separation allowance.

Q: The income statement reports all of the following except: A.Revenues earned by a business. B.Expenses incurred by a business. C.Assets owned by a business. D.Net income or loss earned by a business. E.The time period over which the earnings occurred.

Q: Which of the following statements concerning a monopolist is FALSE?A) A monopolist will produce at which MR = MC.B) For a monopolist, marginal revenue is less than price.C) A monopolist will charge the highest price at which any individual will purchase the product.D) A monopolist will shut down if price is less than average variable cost.

Q: Nontaxable perks such as a company vehicle given to an expatriate is an example of A) an overseas premium. B) a family compensation. C) a special assessment. D) a fringe benefit. E) a separation allowance.

Q: Accounts payable appear on which of the following statements? A.Balance sheet. B.Income statement. C.Statement of owner's equity. D.Statement of cash flows. E.Transaction statement.

Q: An industry in which an increase in output leads to a reduction 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: What is the main reason for the failure of individual incentives to motivate employees in Japan? A) society's emphasis on paternalism and collectivism B) high corruption levels C) practice of cultural chauvinism D) a democratic form of government E) encouragement of individualism

Q: Cash investments by owners are listed on which of the following statements? A.Balance sheet. B.Income statement. C.Statement of owner's equity. D.Statement of cash flows. E.Both C and D.

Q: We assume that firms, when they are deciding the best rate of output at which to produce, A) try to get the highest price possible. B) want to maximize sales.C) want to minimize costs. D) want to maximize profits.

Q: Considering the specific characteristics of Japan's culture, what strategies would be most successful in motivating employees in Japanese organizations? A) individual commission systems B) group bonus systems C) company cars D) birthday gift vouchers E) best employee awards

Q: The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner, net income (or net loss); withdrawals; and the ending balance, is the: A.Statement of financial position. B.Statement of cash flows. C.Balance sheet. D.Income statement. E.Statement of owner's equity.

Q: Use the above figure. The AVC at output 5 isA) $35.00. B) $2.00. C) $3.00. D) $5.00.

Q: Japanese and American salespersons are surprisingly similar except for one difference that Japanese rate as more important than their American counterparts. Identify this difference. A) job security B) promotion C) job satisfaction D) social recognition E) personal growth and development

Q: The financial statement that describes where a company's cash came from and where it went during the period is the: A.Statement of financial position. B.Statement of cash flows. C.Balance sheet. D.Income statement. E.Statement of changes in owner's equity.

Q: What is likely to be the most effective method in making home-office personnel aware of the problems of foreign operations? A) providing cross-cultural training B) designing a theoretical course C) conducting in-house seminars D) holding corporate virtual reality training E) distributing marketing reading materials

Q: Suppose that you decide to purchase either stocks or bonds of a particular corporation and you also prefer to receive some returns from the securities every year. Which should you buy - stocks or bonds? Why?

Q: A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n): A.Balance sheet. B.Income statement. C.Statement of cash flows. D.Statement of owner's equity. E.Financial Status Statement.

Q: The training of foreign employees is likely to be most effective when A) it is handled by trainers who communicate in languages alien to the employees. B) it is tailored to the employees' ways of learning and communicating. C) national differences are ignored during motivational sessions. D) the superiority of their culture is emphasized over others. E) it is different from the familiar ways of communicating.

Q: The most numerous or plentiful firms in the United States are found in this form of businessA) partnership. B) proprietorship. C) monopoly. D) corporation.

Q: A balance sheet lists: A.The types and amounts of the revenues and expenses of a business. B.Only the information about what happened to equity during a time period. C.The types and amounts of assets, liabilities, and equity of a business as of a specific date. D.The inflows and outflows of cash during the period. E.The assets and liabilities of a company but not the owner's equity.

Q: What is most likely the reason that continual training is more important in foreign markets than in domestic ones? A) slow adaptation of foreign markets to innovative products B) technological inferiority of domestic products C) the need to establish the superiority of domestic cultures D) lack of technical knowledge among expatriate salespersons E) lack of routine contact with the parent company

Q: An indifference curveA) must slope downward towards the right.B) is positively sloped.C) is upsloping and is concave to the origin.D) may be upsloping or downsloping, depending on whether the two products are complements or substitutes.

Q: The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called: A.A Balance sheet. B.A Statement of owner's equity. C.A Statement of cash flows. D.An Income statement. E.A Statement of financial position.

Q: Japanese sales representatives tend to be most satisfied with their jobs when A) their values are consistent with those of their company. B) they receive high salaries and many perks. C) they are better educated than their colleagues. D) their technological knowledge is superior to that of others. E) their ideas that do not conform to the company's goals are well-received.

Q: Slices of PizzaTotal UtilityMarginal Utility150 290 3120 4130 5137 6120 In the above table, what is the marginal utility of the sixth slice of pizza consumed?A) 7 B) 137 C) 120 D) -17

Q: When hiring new personnel for international marketing, what is considered to be the best way to assess the traits necessary for success? A) paper-and-pencil ability tests B) interviews and role-playing exercises C) biographical information D) reference checks E) calligraphy analysis

Q: The statement of owner's equity: A.Reports how equity changes at a point in time. B.Reports how equity changes over a period of time. C.Reports on cash flows for operating, financing, and investing activities over a period of time. D.Reports on cash flows for operating, financing, and investing activities at a point in time. E.Reports on amounts for assets, liabilities, and equity at a point in time.

Q: After full adjustment to a price change has occurred, the absolute price elasticity of demand for an item is equal to 1. In the short run, the absolute price elasticity of demand for the item was probablyA) less than 0. B) greater than 0. C) less than 1. D) greater than 1.

Q: Cultural empathy involves A) being subservient to a superior culture. B) understanding another culture and not being antagonistic. C) believing that the people of inferior cultures should be enlightened. D) having the attitude that one's own culture is superior to others. E) being dissatisfied with one's own culture and adopting a new culture.

Q: The statement of cash flows reports information on: A.Revenue activities. B.Operating activities. C.Financing activities. D.Investing activities. E.B, C, and D.

Q: When economists want to obtain a measure of the responsiveness of quantity demanded to changes in price, they useA) the slope of the demand curve. B) the price elasticity of demand.C) only the percentage change in quantity demanded.D) the cross-price elasticity of demand.

Q: A marketer who expects to be effective in the international marketplace should A) be antagonistic toward other cultures. B) not let the local culture influence his or her decisions. C) practice cultural ethnocentrism. D) not let consumer behavior influence marketing decisions. E) have a positive outlook on an international assignment.

Q: The basic financial statements include the: A.Balance Sheet. B.Income Statement. C.Statement of Owner's Equity. D.Statement of Cash Flows. E.All of these.

Q: From an economic standpoint, the amount of pollution should be A) zero. B) the amount that allows firms to maximize profits. C) the amount where firms are earning a normal rate of return on investment. D) at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.

Q: What is the most important quality of marketing personnel for a foreign assignment that a recruiter should consider? A) They should have little cultural empathy as this might distract them from their main purpose. B) When working in a foreign country, they must be capable of making decisions that are not influenced by the habits of the market. C) They should be able to represent a culturally superior image of their country and its products. D) They should be hypersensitive to the behavioral variations in different countries. E) They should possess a considerable breadth of knowledge of many subjects both on and off the job.

Q: The statement of cash flows reports on cash flows for: A.Operating activities. B.Investing activities. C.Financing activities. D.Planning activities. E.A, B and C only.

Q: The funds paid to the government today for Social Security taxes are A) invested to provide for the future benefits of the taxpayers. B) saved to ensure sufficient resources in the future to pay the benefits of workers today when they reach retirement age. C) used by the government to purchase goods and services that will enhance the future productivity of business in the country. D) used to pay the benefits of those who are currently retired.

Q: One feature of third-country nationals is A) U.S. firms have to pay double tax when hiring them. B) they are local nationals who work for a foreign company. C) they work at the company's headquarters and are located in their home country. D) they manage their foreign clients and subordinates from their home country. E) their nationality has little to do with where they work or for whom.

Q: Risk is: A.Net income divided by average total assets. B.The reward for investment. C.The uncertainty about the expected return to be earned. D.Unrelated to expected return. E.Derived from the idea of getting something back from an investment.

Q: Since the National Basketball Association is the only significant employer of professional basketball players, it might be referred to as a(n)A) oligopsony. B) monopoly. C) monopsony.D) oligopolist.

Q: Doreen is a French citizen who has been working for a U.S. company in Spain for twenty years. Doreen may be considered to be a A) virtual expatriate. B) native salesperson. C) third-country national. D) professional expatriate. E) local national.

Q: U. S. government bonds are: A.High-risk and high-return investments. B.Low-risk and low-return investments. C.High-risk and low-return investments. D.Low-risk and high-return investments. E.High risk and no-return investments.

Q: Expatriates from their own countries working for a foreign company in another country are called A) virtual expatriates. B) native salespeople. C) third-country nationals. D) professional expatriates. E) local nationals.

Q: A right-to-work law makes it illegal forA) employers to refuse to hire union workers.B) union membership to be a requirement for continued employment in any establishment.C) union membership to be denied on the basis of race, gender, or national origin. D) a union to exist in a state.

Q: Harris Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets. A.8.4% B.17.2% C.14.3% D.15.6% E.1.5%

Q: What is considered to be the most common job in the United States despite being viewed negatively? A) government service B) attorney C) office management D) personal selling E) teaching

Q: Since the demand for labor depends upon the demand for the final product, we say that labor isA) a derived demand. B) an ʺinverseʺ demand.C) a positive demand. D) a reverse demand.

Q: FastForward has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets. A.7.7%. B.8.5%. C.9.5%. D.11.8%. E.13.0%.

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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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 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: 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: 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: 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: 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: 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: 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.