ISOM Exam UPDATED QUESTIONS
AND CORRECT ANSWERS
The organizational form that many consider to be a blend of the best characteristics of corporations,
partnerships, and sole proprietorships is the _____. - CORRECT ANSWER Limited Liability
Company
When businesses can promote different features of their products and consumers are willing to pay
more for products containing the features they desire, the competitive environment is probably: -
CORRECT ANSWER monopolistic competition
A specific amount of money levied on each unit of product brought into the country is a: - CORRECT
ANSWER Fixed tariff
When Lever Brothers changes the formula of its bar soap to match different countries water
conditions and washing habits, this is an example of a: - CORRECT ANSWER Strategic
alliance
Because Columbia can produce coffee so much more efficiently than other items produced there, it
has which of the following advantages: - CORRECT ANSWER Comparative
Because many countries do not permit foreign companies to purchase and operate facilities in their
countries, a company wishing to do business in such a country may share the business costs with a
firm from the host country by forming a: - CORRECT ANSWER Joint venture
The differences between the flow of money into and out of a country is called its: - CORRECT
ANSWER balance of payments
The fact that the U.S. company 3M owns a film-manufacturing facility in Italy is an example of: -
CORRECT ANSWER a direct investment
Customizing products, promotion, and distribution according to cultural, technological, and national
differences indicates a: - CORRECT ANSWER Multinational strategy
AND CORRECT ANSWERS
The organizational form that many consider to be a blend of the best characteristics of corporations,
partnerships, and sole proprietorships is the _____. - CORRECT ANSWER Limited Liability
Company
When businesses can promote different features of their products and consumers are willing to pay
more for products containing the features they desire, the competitive environment is probably: -
CORRECT ANSWER monopolistic competition
A specific amount of money levied on each unit of product brought into the country is a: - CORRECT
ANSWER Fixed tariff
When Lever Brothers changes the formula of its bar soap to match different countries water
conditions and washing habits, this is an example of a: - CORRECT ANSWER Strategic
alliance
Because Columbia can produce coffee so much more efficiently than other items produced there, it
has which of the following advantages: - CORRECT ANSWER Comparative
Because many countries do not permit foreign companies to purchase and operate facilities in their
countries, a company wishing to do business in such a country may share the business costs with a
firm from the host country by forming a: - CORRECT ANSWER Joint venture
The differences between the flow of money into and out of a country is called its: - CORRECT
ANSWER balance of payments
The fact that the U.S. company 3M owns a film-manufacturing facility in Italy is an example of: -
CORRECT ANSWER a direct investment
Customizing products, promotion, and distribution according to cultural, technological, and national
differences indicates a: - CORRECT ANSWER Multinational strategy
