Chapter 1 TB - Chapter 1 Introduction 1. * 2. * 3. * 4. *...

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Chapter 1 Introduction 1. Which of the following is the primary objective of a firm? A. employees' benefits B. satisfaction of customers C. satisfaction of suppliers D. prompt payment to creditors * E. maximize stockholder wealth 2. Financial risk involves ___. A. fluctuation in exchange rates B. different interest and inflation rates C. balance of payments position D. A and B * E. A, B, and C 3. Three sweeping changes include ___. A. the end of Cold War B. industrialization and growth of the developing world C. the creation of the North American Trade Agreement D. increased globalization * E. A, B, and D 4. Managers are generally defined as ___. A. stockholders * B. agents C. creditors D. suppliers E. customers 5. Which of the following is not one of seven principles of global finance? A. market imperfection B. risk-return tradeoff C. portfolio effect D. comparative advantage * E. company advantage 6. Incentives for multinational company managers include the following except ___. A. stock options B. bonuses C. perquisites D. salary increases * E. vacation 7. Environmental factors affecting international operations are as follows except ___.
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A. foreign customs B. foreign economic factors C. foreign political situations D. foreign legal aspect * E. international distance
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This note was uploaded on 02/16/2012 for the course FIN 7023 taught by Professor Wald during the Spring '12 term at The University of Texas at San Antonio- San Antonio.

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Chapter 1 TB - Chapter 1 Introduction 1. * 2. * 3. * 4. *...

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