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Why is investing in foreign companies an effective way to diversity an individual's investment portfolio?

A) Foreign economies are stronger than the U.S. economy.
B) Foreign stocks are less risky than the stocks of U.S. corporations.
C) Stock dividends received by foreign companies are not subject to US taxes for US citizens.
D) Returns on foreign company stocks do not always change in the same direction as returns on U.S. stocks.

What is an advantage of using ratio analysis in comparing financial statements from different countries?

A) Ratios are expressed as percentages, making currency differences irrelevant to the analysis.
B) Ratios highlight the holding gains or losses related to currency translation.
C) Purchasing power gains and losses from currency translation show up clearly in ratio analysis.
D) Comparing business ratios across countries removes the effect of economic conditions and business culture.

In order to appropriately analyze the trends in foreign financial statement data, which exchange rates should be used?

A) historical exchange rates
B) beginning of year exchange rates
C) current exchange rates
D) average exchange rates

What is a plan for next year expressed in quantitative terms?

A) strategy
B) capital budget
C) operating budget
D) management control system

The process of identifying, evaluating, and selecting projects that require substantial amounts of resources and are expected to generate benefits for many years into the future is called:

A) strategy formulation.
B) strategic planning.
C) capital budgeting.
D) operational budgeting.

The possibility of loss due to unexpected changes in currency values or interest rates is called:

A) economic risk
B) financial risk
C) business risk
D) political risk

Which of the following should not be included in implementing performance evaluation systems?

A) Feedback and review
B) Fair and achievable measures
C) Understandability
D) Changing systems quarterly

What group is responsible for developing international auditing standards?

A) IASB
B) IOSCO online
C) IAASB
D) OECD

The MOU signed by the FASB and IASB in 2002 is known as the

A) Convergence Agreement
B) Norwalk Agreement
C) Norfolk Agreement
D) US GAAP/IFRS Agreement

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Solution Preview

Answers to your homework study questions:

Why is investing in foreign companies an effective way to diversity an individual's investment portfolio?

A) Foreign economies are stronger than the U.S. economy.
B) Foreign stocks are less risky than the stocks of U.S. corporations.
C) Stock dividends received by foreign companies are not subject to US taxes for US citizens.
D) Returns on foreign company stocks do not always change in the same direction as returns on U.S. stocks. <-- this is the correct answer. The other answers are false.

What is an advantage of using ratio analysis in comparing financial statements from different countries?

A) Ratios are expressed as percentages, making currency differences irrelevant to the analysis.
B) Ratios highlight the holding gains or losses related to currency translation.
C) ...

Solution Summary

The solution provides the correct answers for multiple choice questions for investing and foreign companies.

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E-commerce questions

______are systems where only routine transactions processing and information flow take place between 2 or more organizations using a standard protocol, such as electronic data ingerchange (EDI)
-E-CRM
-Interorganizational information systems
-Intrabusiness EC
-B2B

Software tools that scout teh Web for stores that sell similar items at low prices are called:
-Shopping Portals
-Shopbots
-Shopping Browsers
-Intelligent search engines

From 2001 to 2006, a majority of e-exchanges:
-increased in size due to mergers of small e-exchanges
-expanded by adding business partners
-folded due to a lack of customers, cash or both
-devised new methods to increase revenues and profits

______are a popular online publishing technology for creating a Web page that can be edited by anyone with a standard Web browser.
-blogs
-point-casts
-wikis
-P2P

Infrastructures that support the wireless connection are:
-network access points, mobile communications server switches, and cellular transmitters and recievers
-WAP gateways, GPS locators and GPS satelites
-PDA's, Smartphones and portable computers
-Web servers, mobile devices and microbrowsers

It is currently known that if a front-end application, such as a Web site, is effectively secured, then:
-The data itself may not be secure because back-end databases may not function as planned
-The data itself is secured by firewalls
-The data itself is secure because web applications are not targeted by attackers
-The data itself may not be secure because the application may not function as planned

Solutions to problems in the supply chain for EC companies are:
-generic across both EC and traditional companies
-so complex that most EC companies cannot afford to implement them
-critical during start-up but usually become manageable and insignificant as EC companies mature
-usually unique for each EC company

All of the following are EC investment cases where formal evaluation may not be needed except:
-when the value of the investment is relatively small for the organization
-when the relevent data are not available, are inaccurate, or are too volatile
-when competitors have made that type of investment
-when the EC project is mandated and must be done regardless of the cost and benefits

Which of the following statements about the rights to privacy and free speech is NOT correct?
-Those rights have an increasingly important role in an information society and to EC
-As with all rights, the right of free speech is not unlimited
-The internet has destroyed teh right to privacy
-Defamation laws put restrictions on what may be freely said or published

A(n) ______is defined as a group of people that have some kind of commercial or business relationship such as the relationships between sellers and buyers, buyers among themselves, buyers and suppliers, and colleagues and other colleagues.
-Affinity portal
-Internet Portal
-entrepreneurial network
-business network

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