Answer the following statements true (T) or false (F)
1. A greenfield venture is a strategic alliance with individuals and organizations in developing nations; the venture's goals are to assist, educate, and share the risks and rewards of starting a new nonprofit organization in the developing country.
2. There are two types of tariffs: a revenue tariff, designed simply to raise money for the government; and a protective tariff, which raises the price of imported goods to make the prices of domestic products more competitive.
3. NAFTA is a trading bloc consisting of the United States, Canada, Panama, and Mexico.
4. The "most favored nation" trading status describes a condition in which a country grants other countries favorable trading treatment, such as the reduction of import duties.
1. FALSE
A greenfield venture is a foreign subsidiary that the owning organization has built from scratch.
2. TRUE
There are two types of tariffs: One is designed simply to raise money for the government (revenue tariff). The other is designed to raise the price of imported goods to make the prices of domestic products more competitive (protective tariff).
3. FALSE
Formed in 1994, the North American Free Trade Agreement (NAFTA) is a trading bloc consisting of the United States, Canada, and Mexico.
4. TRUE
"Most favored nation" trading status describes a condition in which a country grants other countries favorable trading treatment, such as the reduction of import duties.
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The operating income of a company is $10 million, the net marketing contribution is $30 million and general and administrative expenses are $5 million. Calculate the other operating expenses
A) $10 million B) $5 million C) $15 million D) $20 million E) $25 million
The Export-Import Bank of the United States encourages American firms to sell overseas by providing direct loans and loan guarantees to foreign purchasers of American goods. To American firms, this represents a
a. specific subsidy. b. ad valorem subsidy. c. domestic subsidy. d. export subsidy.
Wage plans that encourage employees to work harder and earn more by producing a high level of output are known as:
a. Contributory plans. b. Salary wage plans. c. Incentive wage plans. d. Hourly-rate plans.
Edward I. Altman developed a multivariate model to predict bankruptcy. The model produces an overall discriminant score called a Z value. Which of the following statements is probably an unreasonable statement relating to the Z value?
a. The sales generating ability of the firm's assets is one of the important considerations in the Z value. b. The lack of a market value for a company's stock will reduce the significance of the Z value approach. c. Total assets is an important consideration in the Z value computation. d. Cumulative profitability over time is considered in the Z value computation. e. A Z score of 2.00 or below indicates a very healthy company.