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MCQs

Total Questions : 176 | Page 13 of 18 pages
Question 121. Portfolio Investment is dealing in
  1.    Same securities
  2.    Short term investment
  3.    Different securities
  4.    Don
 Discuss Question
Answer: Option C. -> Different securities
Answer: (c).Different securities
Question 122. In real world, all factors of production are perfectly
  1.    Mobile
  2.    Immobile
  3.    Somewhat mobile
  4.    All of answers are correct
 Discuss Question
Answer: Option B. -> Immobile
Answer: (b).Immobile
Question 123. Aim of MNC is to boost accounting profitability by shifting funds around the
  1.    Country
  2.    Region
  3.    World
  4.    Market
 Discuss Question
Answer: Option C. -> World
Answer: (c).World
Question 124. Impact of 9/11 is
  1.    Political Instability
  2.    Terrorist Attack
  3.    More foreign investment
  4.    Economic Instability
 Discuss Question
Answer: Option D. -> Economic Instability
Answer: (d).Economic Instability
Question 125. We multiply foreign revenue with rate with respect to that country is
  1.    Forward rate
  2.    Spot rate
  3.    Cash Flows
  4.    Portfolio Investment
 Discuss Question
Answer: Option B. -> Spot rate
Answer: (b).Spot rate
Question 126. Slightest hazardous method by which organizations carry out international trade is
  1.    Licensing
  2.    Franchising
  3.    International Trade
  4.    establishment of new subsidiaries
 Discuss Question
Answer: Option C. -> International Trade
Answer: (c).International Trade
Question 127. One of generally prevalent aspects conflicting with recognition of ambition of an MNC is existence of
  1.    Agency problem
  2.    Licensing
  3.    Corporate Governance
  4.    Management
 Discuss Question
Answer: Option A. -> Agency problem
Answer: (a).Agency problem
Question 128. Which of following is not a cause for global investment?
  1.    To gain access to important raw materials.
  2.    To produce products and/or services more efficiently than possible domestically.
  3.    To provide an expected risk-adjusted return in excess of that required.
  4.    International investments have less political risk than domestic investments.
 Discuss Question
Answer: Option D. -> International investments have less political risk than domestic investments.
Answer: (d).International investments have less political risk than domestic investments.
Question 129. Agency problem is between
  1.    Manager and Employees
  2.    Manager and Government
  3.    Manager and Shareholders
  4.    Parent to Subsidiary
 Discuss Question
Answer: Option C. -> Manager and Shareholders
Answer: (c).Manager and Shareholders
Question 130. Most unsafe mode by which firms perform worldwide business is
  1.    Licensing
  2.    Franchising
  3.    International Trade
  4.    establishment of new subsidiaries
 Discuss Question
Answer: Option D. -> establishment of new subsidiaries
Answer: (d).establishment of new subsidiaries

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