Test Bank for International Financial Management, 14th Edition by Jeff Madura
203 views 7 purchases
Module
Financial Management
Institution
Financial Management
Test Bank for International Financial Management 14e 14th Edition by Jeff Madura.
ISBN-13: 0544
Full Chapters test bank included
Part 1: The International Financial Environment
Chapter 1: Multinational Financial Management: An Overview
1-1 Managing the MNC
1-2 Why MNCs Pursue Internation...
Indicate whether the statement is true or false.
1. The parent of an MNC can implement compensation plans that directly reward the subsidiary managers for
enhancing the value of the MNC.
a. True
b. False
2. MNCs commonly consider establishing a new foreign subsidiary to replace their exporting business because it
allows them to avoid exchange rate risk.
a. True
b. False
3. Franchising is the process by which national governments sell state-owned operations to corporations and other
investors.
a. True
b. False
4. If managers of foreign subsidiaries make decisions that maximize the values of their respective subsidiaries, they
automatically maximize the value of the entire corporation.
a. True
b. False
5. A decentralized management style results in relatively high agency costs for an MNC.
a. True
b. False
6. The imperfect markets theory states that factors of production are somewhat immobile, allowing firms to
capitalize on a foreign country's resources.
a. True
b. False
7. The valuation of an MNC accounts for all the cash flows received by the foreign subsidiaries plus all the cash
flows remitted by the subsidiaries.
a. True
b. False
8. A microeconomic perspective focuses on external forces such as economic conditions that can affect the value
of an MNC.
a. True
b. False
9. One form of exposure to political risk is terrorism.
a. True
b. False
Page 1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Tutor247. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £24.52. You're not tied to anything after your purchase.
