Begin Session 5 Chapter 2-The external business environment

The price of one currency in terms of another is called:

• the tax rate

• inflation

• the exchange rate

• the interest rate

As prices increase, demand will

• rise

• fall

As prices increase, supply will

• rise

• fall

A business which has offices in several countries must perform all financial operations in one country.

• true

• false

A business which operates globally has an increased risk of its data being compromised.

• true

• false

An increase in interest rates encourages increases in:

• savings

• borrowing

• consumer spending

What would happen if the exchange rate of the Euro increases against the pound?

• EU goods would become cheaper to buy in the UK

• UK businesses would expect to sell less in the EU

• UK goods would become cheaper to buy in the EU

Which one is a key tax principle?

• objectivity

• integrity

• equity

• confidentiality

Which one is not a key tax principle?

• Certainty

• Fairness

• Transparency

• objectivity