Chapter 15 International Corporate
Governance and Control
Comprehensive Exam Study Guide
Latest Updated 2024/2025
,Chapter 15 International Corporate
Governance and Control
Comprehensive Exam Study Guide
Latest Updated 2024/2025
1. International governance is achieved by all of the following except:
a. poison pills.
b. board of directors.
c. institutional investors.
d. blockholders.
e. All of the above achieve governance.
ANS: A PTS: 1
2. Which of the following is not an advantage of international acquisitions over the establishment of a
new subsidiary?
a. The firm can immediately expand its international business.
b. An international acquisition typically generates quicker cash flows than the establishment
of a new subsidiary.
c. International acquisitions are generally cheaper than the establishment of a new
subsidiary.
d. An international acquisition typically generates larger cash flows than the establishment of
a new subsidiary.
e. All of the above are advantages of international acquisitions.
ANS: C PTS: 1
3. According to your text, U.S. firms pursue more international acquisitions in than in other
countries.
a. the U.K.
b. Mexico
c. Japan
d. Germany
e. France
ANS: A PTS: 1
4. Which of the following is not true regarding a target's previous cash flows?
a. They may serve as an initial base from which future cash flows may be estimated after
accounting for other factors.
b. It may be easier to estimate the cash flows to be generated by a target than to estimate the
cash flows to be generated from a new foreign subsidiary.
c. They are always good indicators of future cash flows.
d. All of the above are true.
ANS: C PTS: 1
5. As far as the managerial talent of the target is concerned:
a. the manner in which the acquirer plans to deal with the managerial talent will affect the
estimated cash flows to be generated by the target.
b. downsizing will reduce expenses and increase productivity and revenues.
c. governments of some countries are likely to intervene and prevent the acquisition if
downsizing is anticipated.
d. all of the above
e. A and C only
, Chapter 15 International Corporate
Governance and Control
Comprehensive Exam Study Guide
Latest Updated 2024/2025
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