Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?

A) MNEs tend to rely more on short and intermediate term debt.
B) MNEs have greater foreign exchange risk.
C) MNEs have greater costs of asymmetric information.
D) MNEs have higher agency costs.


Answer: A

Business

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Anish needs to convince her employee to work through lunch today on a big project. Anish has a very direct communication style and her employee does not. What is the best strategy for Anish to influence her employee on this issue?

a. Try to frame her argument using her employee’s communication style. b. Hint to her employee that such an action may be necessary. c. Be blunt and to the point in asking her employee to work through lunch. d. First, teach the coworker to use a more direct communication style.

Business

Jean Claude has just completed a new line of designer handbags. He wants the price to communicate to the customer that the handbags are high quality and exclusive, so he sets the price high. He knows that after this season, the price may need to decrease as the market evolves. Jean Claude is using a ________ strategy.

A. penetration pricing B. price skimming C. target ROI D. competitor-based pricing E. value pricing

Business

When comparing labor and corporate organizations, one can conclude that all of the following aspects are similar except:

A. The structure of the organizations' hierarchies. B. The organizations' democratic practices. C. The organizations' formalized procedures. D. The organizations' specialized functions.

Business

During which of the following phase gates would the questions "Were the project scope objectives met?" and "Were project cost and schedule met?" be answered?

A. Screening and selection B. Closure C. Proposal D. Progress evaluation E. Implementation

Business