Chapter 01 Globalization and the Multinational

Chapter 01 Globalization and the Multinational

Question # 00040448 Posted By: solutionshere Updated on: 01/05/2015 05:27 AM Due on: 02/04/2015
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17.

The Nestlé Corporation, a well-known Swiss MNC, used to issue two different classes of common stock, bearer shares and registered shares, and foreigners were allowed to hold only


A.

registered shares.

B.

bearer shares.

C.

voting shares.

D.

convertible shares.

18.

Deregulated financial markets and heightened competition in financial services provided an environment for financial innovations that resulted in the introduction of various instruments. Examples of these innovative instruments include


A.

currency futures and options, foreign stock index futures and options.

B.

multicurrency bonds.

C.

international mutual funds, country funds, exchange traded funds.

D.

all of the above

19.

Nestlé, a well-known Swiss corporation,


A.

has been a paragon of virtue in its opposition to all forms of political risk.

B.

at one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, the total market value of the firm fell.

C.

at one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, there was a major transfer of wealth from foreign shareholders to Swiss shareholders.

D.

none of the above

20.

The goal of shareholder wealth maximization


A.

is not appropriate for non-U.S. business firms.

B.

means that all business decisions and investments that a firm makes are done for the purpose of making the owners of the firm better off financially.

C.

is a sub-objective the firm should attempt to achieve after the objective of customer satisfaction is met.

D.

is in conflict with the privatization process taking place in third-world countries.

21.

As capital markets are becoming more integrated, the goal of shareholder wealth maximization


A.

has been altered to include other goals as well.

B.

has lost out to other goals, even in the U.S.

C.

has been given increasing importance by managers in Europe.

D.

has been shown to be a deterrent to raising funds abroad.

22.

Corporate scandals at firms such as Enron, WorldCom and the Italian firm Parmalat


A.

show that managers might be tempted to pursue their own private interests at the expense of shareholders.

B.

show that Italian shareholders are better at monitoring managerial behavior than U.S. shareholders.

C.

show that white-collar criminals hardly ever get punished.

D.

show that socialism is a better way to go than capitalism.

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    Tutorial # 00039594 Posted By: solutionshere Posted on: 01/05/2015 05:27 AM
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