Question 1

_____ is the risk of a change in the exchange rate that will adversely affect the company.

Accepted Answer

The answer of _____ is the risk of a change...

Question 2

_____ refers to the company-generated forecast of future spot exchange rates.

Accepted Answer

The answer of _____ refers to the company-generated forecast of...

Question 3

What repercussions did the US CFOs anticipate when the Chinese government decided to allow the Yuan to float more freely in relation to other international currencies in 2006?

Accepted Answer

The answer of What repercussions did the US CFOs anticipate...

Question 4

One alternative investment strategy approved by the Sharia is _____ that allows profit and loss sharing.

Accepted Answer

The answer of One alternative investment strategy approved by the...

Question 5

Public share ownership in China remains complex.Explain.

Accepted Answer

The answer of Public share ownership in China remains complex.Explain....

Question 6

_____ refers to a central location where the cash balances of a parent and its subsidiaries are pooled.

Accepted Answer

The answer of _____ refers to a central location where...

Question 7

The process of _____ budgeting helps a firm decide which major investment projects will be most economically advantageous for the firm by assessing each project's benefits, costs, and risks.

Accepted Answer

The answer of The process of _____ budgeting helps a...

Question 8

The United States doesn't mandate using the IFRS.Instead, the United States has the _____, which issues standards known as generally accepted accounting principles (GAAP).

Accepted Answer

The answer of The United States doesn't mandate using the...

Question 9

The regional CFOs play an important role in the functioning of an organization with a decentralized structure.Explain.

Accepted Answer

The answer of The regional CFOs play an important role...

Question 10

_____ refers to Islamic law which, in terms of finance, prohibits charging interest on money and other common business activities, including short selling.

Accepted Answer

The answer of _____ refers to Islamic law which, in...

Question 11

In the case of _____ financing, firms can borrow money from banks or by selling bonds.

Accepted Answer

The answer of In the case of _____ financing, firms...

Question 12

Generally, compliance with local tax regulations means setting prices such that they satisfy the "_____." That is, the prices must be consistent with third-party market results.

Accepted Answer

The answer of Generally, compliance with local tax regulations means...

Question 13

_____ financial statements demonstrate that firms, although legally separate from the parent and each other, are in fact economically interdependent.

Accepted Answer

The answer of _____ financial statements demonstrate that firms, although...

Question 14

In case of a _____ contract the firm will pay that rate specified at the beginning of the contract regardless of what the current exchange rate is at the date of the final settlement.

Accepted Answer

The answer of In case of a _____ contract the...

Question 15

When a subsidiary obtains funding through a _____ it allows both the subsidiary and the parent eliminate paying transaction costs to an outside entity such as a bank, which would charge fees to make the transaction.

Accepted Answer

The answer of When a subsidiary obtains funding through a...

Question 16

What are the advantages of a fronting loan?

Accepted Answer

The answer of What are the advantages of a fronting...

Question 17

_____ refers to the ways in which a multinational firm's assets are financed, from short-term borrowing to long-term debt and equity.

Accepted Answer

The answer of _____ refers to the ways in which...

Question 18

The downsides of a(n)_____ financial organization structure are higher costs (due to having to hire more employees), some unavoidable duplication of effort, and a diminishment of control.

Accepted Answer

The answer of The downsides of a(n)_____ financial organization structure...

Question 19

What are the advantages of centralized depositories?

Accepted Answer

The answer of What are the advantages of centralized depositories?...

Question 20

A _____ is a payment on behalf of a payer that is guaranteed by the issuing bank - a common method in Asia, but much less common in the United States.

Accepted Answer

The answer of A _____ is a payment on behalf...

Quiz 15: Understanding the Roles of Finance and Accounting in Global Competitive Advantage