1. A/an __________-type manager is concerned with processing information analytically and impersonally.
A. thinking
B. feeling
C. by-the-book
D. analytical
Answer: __________
2. When Company A controls a foreign operation rather than collaborating with a foreign business, it is called
A. a franchise.
B. internalization.
C. a consortium.
D. a licensing agreement.
Answer: __________
3. If a company wishes to use its resources to specialize in the production of goods and services that are already productive and profitable, it is doing so to gain a/an __________ advantage.
A. absolute
B. acquired
C. comparative
D. natural
Answer: __________
4. Employees who are more comfortable working simultaneously with all the tasks they face work in a/an __________ culture.
A. feminine
B. ethnocentric
C. polychronic
D. monochronic
Answer: __________
5. __________ risk refers to economic conditions that may adversely affect a company's ability to operate profitably and use its funds to meet its strategies.
A. Political
B. Technological
C. Fiscal
D. Economic
Answer: __________
6. An indicator of earnings management is the
A. inventory costs on the first-in, first-out basis, regardless of the physical flow of the goods.
B. use of the straight-line method of depreciation for all fixed assets.
C. continued overestimation of the useful lives and residual values of fixed assets.
D. front-end loading of expenses.
Answer
7. Company X does not capitalize an asset leased from Company Y because it is not required to do so under GAAP. In analyzing Company X, one would capitalize the leased asset when
A. GAAP permits the option of doing so.
B. the benefits of leasing an asset outweigh those of purchasing it.
C. Company Y does not want to capitalize the leased asset.
D. Company X assumes the risks and rewards associated with the leased asset.
Answer
8. An analyst uses analytical judgment primarily to understand
A. pro forma financial statements.
B. generally accepted accounting principles.
C. the economic reality that underlies the financial disclosures.
D. the nominal dollar concept of capital maintenance.
Answer
9. Which of the following situations would cause analysts to be alarmed?
A. An increase in the cash collected as a percentage of revenues.
B. A decrease in cash collected from customers compared to that paid to suppliers.
C. An increase in cash collected from customers compared to that paid to suppliers.
D. A decrease in the cash paid as a percentage of cost of goods sold
Answer
10. A financially distressed entity’s balance sheet would most likely consist of
A. immaterial amounts of current assets and a substantial amount of long-term assets.
B. substantial amounts of long-term debt and a relatively small and non-productive long-
term asset base.
C. large amounts of both current assets and current liabilities.
D. sufficient revenues but insufficient earnings.
Answer
11. Many people new to global marketing do not realize the importance of language and use the terms "global distribution" and "global logistics" interchangeably. While some of the functions of someone employed in global distribution are similar to those of someone employed in global logistics, the management of ____ truly distinguishes global distribution from global logistics.
A. global transportation activities
B. global storage
C. global pricing
D. channels within a country
Answer: __________
12. The major organizational tasks incumbent on an organization when formulating a global marketing strategy include all of the following EXCEPT
A. setting up an effective "multiple-way" communication system.
B. proving local country managers with incentives to implement the global strategy.
C. devising a means of excluding local country managers from global decision-making.
D. building flexibility into the organization.
Answer: __________
13. Even experienced global managers thrust into unfamiliar cultures may unintentionally offend someone by the way they dress, their body position, their gestures, their eye movements, or other factors. These factors comprise which one of the following global issues?
A. Culture shock
B. Body language
C. "Silent speech"
D. Culture trap
Answer: __________
14. A camera manufacturer is preparing to enter its first market outside its home country. In order to do so, it desires to quickly identify the product features of the most successful products in this new market as inexpensively as possible. The best way to accomplish this is through the use of
A.
B. direct observation of the product purchase and product use.
C. sophisticated interviewing techniques.
D. mail questionnaires.
Answer: __________
15. Whenever possible, a company should attempt to minimize customs payments while maximizing its ability to "tailor" its offerings to specific in-country markets. This can be accomplished by shipping partially processed goods to small factories or assembly operations located in specially-designated customs-free areas near the products' final destination. Under this scenario the firm is making maximum use of which one of the following?
A. Free-trade zones
B. Wholly-owned sales subsidiaries
C. Maquiladoras
D. Freight forwarders
Answer: __________
16. A change agent who advocates an employee evaluation system based on clearly defined performance criteria will be well received if the cultural dimensions are
A. collective and low power distance.
B. feminine and low uncertainty avoidance.
C. high and low power distance.
D. individualistic and masculine.
Answer: __________
17. Ivorians like foreigners to work in their companies because of their
A. access to international funding.
B. social neutrality.
C. personalities.
D. technical expertise.
Answer: __________
18. An example of duality in a global organization is the
A. focus on structural change rather than capital expenditures.
B. maintenance of a corporate identity and culture while the company moves across borders.
C. offshoring of too many company functions, which depletes resources at headquarters.
D. use of the same performance management policies worldwide.
Answer: __________
19. Employee empowerment does not appear to be an issue in
A. companies expect all employees to aspire to the job of CEO.
B. decision-making is shared through all levels of the organization.
C. employees are considered to be master craftsmen who do not need to be micro-managed.
D. structural and personal resources are given high priority.
Answer
20. A society that has very strong family networks but relatively weak bonds of trust among people unrelated to one another will
A. encourage family run businesses, which foster organizational distrust.
B. endorse performance management systems based on competition and creativity.
C. promote economic development in relatively poor national cultures.
D. persuade employees to take on more responsibility and ownership in the outcome of their work.
Answer
