International Financial Management Test #1 (Chapters 1–4) – Complete Exam Questions
International
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Financial
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1 Management
Answers Test #1 (Chapters 1–4) – Complete Exam Questions with Accurate Verified Answers.pdf
International Financial
Management Test #1
(Chapters 1–4) – Complete
Exam Questions with
Accurate Verified Answers
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 17
Page 1 of 17 2026-03-17
,International Financial Management Test #1 (Chapters 1 - 4) Page 2 International Financial Management Test #1 (Chapters 1 - 4).pdf
b. shareholder wealth; shareholder wealth
With regard to corporate goals, an MNC is mostly concerned with maximizing _________, and a purely domestic firm is
mostly concerned with maximizing _______.
a. shareholder wealth; short-term earnings
b. shareholder wealth; shareholder wealth
c. short-term earnings; sales volume
d. short-term earnings; shareholder wealth
d. all of the above are forms of corporate control that could reduce agency problems for an MNC
Which of the following could reduce agency problems for an MNC?
a. stock options as managerial compensation
b. hostile takeover threat
c. investor monitoring
d. all of the above are forms of corporate control that could reduce agency problems for an MNC
Page 2 of 17 2 of 17 2026-03-17
, International Financial Management Test #1 (Chapters 1 - 4) Page 3 International Financial Management Test #1 (Chapters 1 - 4).pdf
b. imperfect markets theory
Which of the following theories identifies the non transferability of resources as a reason for international business?
a. theory of comparative advantage
b. imperfect markets theory
c. product cycle theory
d. none of the above
d. all of these are correct
Agency costs faced by MNC's may be larger than those faced by purely domestic firms because:
a. monitoring of managers located in foreign countries is more difficult
b. foreign subsidiary managers raided in different cultures may not follow uniform goals
c. MNC's are relatively large
d. all of these are correct
b. international trade
Which of the following does NOT constitute a form of direct foreign investment?
a. franchising
b. international trade
c. joint ventures
d. acquisitions of existing operations
e. establishment of new foreign subsidiaries
Page 3 of 17 3 of 17 2026-03-17
International
with Accurate
Financial
Page
Verified
1 Management
Answers Test #1 (Chapters 1–4) – Complete Exam Questions with Accurate Verified Answers.pdf
International Financial
Management Test #1
(Chapters 1–4) – Complete
Exam Questions with
Accurate Verified Answers
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 17
Page 1 of 17 2026-03-17
,International Financial Management Test #1 (Chapters 1 - 4) Page 2 International Financial Management Test #1 (Chapters 1 - 4).pdf
b. shareholder wealth; shareholder wealth
With regard to corporate goals, an MNC is mostly concerned with maximizing _________, and a purely domestic firm is
mostly concerned with maximizing _______.
a. shareholder wealth; short-term earnings
b. shareholder wealth; shareholder wealth
c. short-term earnings; sales volume
d. short-term earnings; shareholder wealth
d. all of the above are forms of corporate control that could reduce agency problems for an MNC
Which of the following could reduce agency problems for an MNC?
a. stock options as managerial compensation
b. hostile takeover threat
c. investor monitoring
d. all of the above are forms of corporate control that could reduce agency problems for an MNC
Page 2 of 17 2 of 17 2026-03-17
, International Financial Management Test #1 (Chapters 1 - 4) Page 3 International Financial Management Test #1 (Chapters 1 - 4).pdf
b. imperfect markets theory
Which of the following theories identifies the non transferability of resources as a reason for international business?
a. theory of comparative advantage
b. imperfect markets theory
c. product cycle theory
d. none of the above
d. all of these are correct
Agency costs faced by MNC's may be larger than those faced by purely domestic firms because:
a. monitoring of managers located in foreign countries is more difficult
b. foreign subsidiary managers raided in different cultures may not follow uniform goals
c. MNC's are relatively large
d. all of these are correct
b. international trade
Which of the following does NOT constitute a form of direct foreign investment?
a. franchising
b. international trade
c. joint ventures
d. acquisitions of existing operations
e. establishment of new foreign subsidiaries
Page 3 of 17 3 of 17 2026-03-17
