Practice lang muna

Statement 1: Multinational corporations engage in some form of international business.
Statement 2: The primary goal of MNC managers is to maximize the firm’s value.

• • statement 1 is correct, statement 2 is incorrect

• • statement 2 is correct, statement 1 is incorrect

• • both statements are correct

• • both statements are incorrect

Statement 1: International Financial Management involves international investing and financing decisions.
Statement 2: International Financial Management applies only to multinational corporations.

• • statement 1 is correct, statement 2 is incorrect

• • statement 2 is correct, statement 1 is incorrect

• • both statements are correct

• • both statements are incorrect

Statement 1: Firms often begin international business by exporting products.
Statement 2: Firms usually establish foreign subsidiaries before exporting.

• • statement 1 is correct, statement 2 is incorrect

• • statement 2 is correct, statement 1 is incorrect

• • both statements are correct

• • both statements are incorrect

Statement 1: Many large MNCs generate more than half of their sales in foreign countries.
Statement 2: Smaller firms never participate in foreign markets.

• statement 1 is correct, statement 2 is incorrect

• statement 2 is correct, statement 1 is incorrect

• both statements are correct

• both statements are incorrect

Statement 1: Exchange rates can affect a foreign competitor’s production costs.

Statement 2: Inflation has no effect on international competition.

• statement 1 is correct, statement 2 is incorrect

• statement 2 is correct, statement 1 is incorrect

• both statements are correct

• both statements are incorrect

Statement 1: Management, marketing, accounting, and finance are integrated in managing MNCs.
Statement 2: Finance decisions in MNCs are independent of other business functions.

• statement 1 is correct, statement 2 is incorrect

• statement 2 is correct, statement 1 is incorrect

• both statements are correct

• both statements are incorrect

Statement 1: Finance decisions include whether to expand or discontinue operations in a country.
Statement 2: Finance decisions are unrelated to consumer demand.

• statement 1 is correct, statement 2 is incorrect

• statement 2 is correct, statement 1 is incorrect

• both statements are correct

• both statements are incorrect

Statement 1: Financial managers rely on accounting and information systems for data.
Statement 2: Marketing data has no relevance to financial decisions.

• statement 1 is correct, statement 2 is incorrect

• statement 2 is correct, statement 1 is incorrect

• both statements are correct

• both statements are incorrect

Statement 1: An agency problem occurs when managers’ goals conflict with shareholder wealth maximization.
Statement 2: Agency problems never occur in multinational corporations.

• statement 1 is correct, statement 2 is incorrect

• statement 2 is correct, statement 1 is incorrect

• both statements are correct

• both statements are incorrect

Statement 1: Agency costs are generally higher for MNCs than domestic firms.
Statement 2: Monitoring foreign subsidiary managers is easier than monitoring domestic managers.

• • statement 1 is correct, statement 2 is incorrect

• • statement 2 is correct, statement 1 is incorrect

• • both statements are correct

• • both statements are incorrect