QUESTIONS WITH ACCURATE SOLUTIONS
1. Explain how shareholders influence corporate
governance. By directly managing the
company's finances
Through voting on key issues and electing the board of
directors
By setting the company's marketing
strategies By determining the salaries
of all employees
2. Which of the following AI systems is excellent for diagnostic and
prescriptive problems, and applies reasoning capabilities to
reach a conclusion?
Relational system
Expert system
Geographical information
system Data-mining system
3. A multinational enterprise (MNE):
is a firm whose stockholders come from several
nations is a firm that exports to several different
nations
is a firm with production facilities in several nations
tends to be smaller than the largest domestic firms in its
home country
4. Liquidity refers to
, the number of times a dollar changes hands in the
creation of GDP in an economy.
the ease with which a financial security can be traded for
cash.
the number of shares of stock a corporation issues.
, the ease with a stock can be traded for a bond.
5. The Sarbanes-Oxley Act created the _ to oversee the accounting
firms that audit public corporations
Public Company Accounting Oversight
Board Corporate Accounting Oversight
Commission Consumer Financial
Protection Bureau
6. Which of the following theories is classified as a process
motivation theory?
Maslow's hierarchy of needs
goal-setting theory
Herzberg's two-factor
theory reinforcement
theory
7. What is the primary purpose of diversification in investment
strategies? To increase the overall return on
investment
To spread out investments to reduce risk
To focus on a single industry for
higher gains To eliminate all financial
risks
8. How does one calculate the return on investment?
Net profits after taxes divided by total
investment Total investment divided by net
profits after taxes Revenue minus costs
, Sales times units sold