exam: 500668RR - The Organizational Environment, Part 2
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Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. A foreign currency sale is recorded as revenue, using the exchange rate on
A. a date that the company decides to use.
B. the date the balance sheet is consolidated to financial reports.
C. a historical average over the period between the sale and the consolidation.
D. the date of the sale.
2. A traditional approach to product design that involves a sequential approach to design has been termed
A. product-based design.
B. sequenced design.
C. concurrent engineering.
D. over the wall.
3. Quality control in foreign affiliates from the home office is less difficult when
A. separate standards are used in each plant.
B. the quality reports are sent to the home office at the same time.
C. the quality inspectors are trained in the home office.
D. production equipment is similar.
4. When a new plant can be built that's a duplicate of others already functioning
A. labor trainers experienced in the operation of the machinery can be sent to the new locations without undergoing any training.
B. vendors aren't needed.
C. costs will be the same as in existing locations.
D. vendors will be requested to furnish equipment that they've supplied previously.
5. _______ are responsible for a shift in power from manufacturers to retailers.
A. Foreign environmental forces
B. Public brands
C. Internet advertisers
D. Private brands
6. When a subsidiary transfers its net cash flows to a cash center that disperses the cash to net receivers, the subsidiary is engaging in
A. leading and lagging.
B. transferring.
C. hedging.
D. multilateral netting.
7. Global retailing requires that the company pay particular attention to _______ in distribution strategies.
A. use of animal skins in products
B. localization
C. native company competition
D. product loyalty
8. Foreign shares held by a custodial US bank in the issuer's home market and traded in dollars on the US exchange are called
A. international finance operators.
B. foreign national stipends.
C. American depository receipts.
D. hedge funds.
9. Hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform these tasks, is
A. outsourcing.
B. offshoring.
C. subcontracting.
D. supply chain management.
10. Taking a position in one market to offset exposure to price changes in an opposite position is called
A. consolidation.
B. diversification
C. hedging.
D. centralization.
11. It has been estimated that at least _______ percent of products currently on the market weren't available five years ago.
A. 55
B. 30
C. 50
D. 45
12. According to the text, the cost of importing a foreign-sourced product, including freight, insurance, and packing
A. is insignificant.
B. may range from 26 to 110 percent of the cost of the product.
C. may range from 10 to 12 percent of the cost of the product.
D. may not be charged if the terms of sale are CIF, port of entry.
13.Documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service are referred to as
A. standards.
B. logistics.
C. processes.
D. value chains.
14. Investigation of export and import data shows
A. there's a strong relationship between global sourcing and ownership of the foreign sources.
B. American firms, but not Japanese firms, buy from their US subsidiaries.
C. American firms import twice as much from their overseas subsidiaries as foreign firms import from their US affiliates.
D. there's no relationship between global sourcing and ownership of the foreign sources.
15. _______ exposure is a currency exchange risk resulting from exposure during the consolidation of subsidiary financial statements.
A. Derivative
B. Temporal
C. Translation
D. Parallel
16. Recruiting salespeople overseas can be difficult because of
A. the fear of outsourcing.
B. language differences.
C. foreign unfamiliarity with the product.
D. a society's stigma associated with selling.
17. Control of quality in the production of goods overseas is most easily accomplished when
A. raw materials come from just one supplier.
B. production equipment overseas is similar to that used in the United States.
C. components of the machinery are made in the United States.
D. workers have advanced language skills.
18. Activities that are involved in producing a company's products and services and how these activities are linked together are often referred to as
A. supply chains.
B. value chains.
C. organization design.
D. operations management.
19. Relocating activities a company used to do in-house to another country is called
A. offshoring.
B. emigration.
C. outsourcing.
D. immigration.
20. A/An _______ tax is paid not by the person whose labor generates the income but by the business that makes the payment for the labor.
A. withholding
B. excise
C. swap
D. Money market
