1) All firms that are publicly traded in the United States will be required to adopt the _____ in the near future.

a.Generally Accepted Accounting Principles (GAAP)

b.Financial Accounting Standards Rules (FASR)

c.Governmental Accounting Standards Principles (GASP)

d.International Financial Reporting Standards (IFRS)

e.National Advisory Accounting Standards (NAAS)

2) Which form of informational market efficiency states that current market prices of securities reflect all pertinent information?

a.Strong-form

b.Semistrong-form

c.Weak-form

d.Economic-form

e.Real-form

3) Which of the following statements increases the complexity of the manager's task in a multinational corporation?

a.The currency values of different countries in which a firm operate experience fluctuations.

b.Cash flows in various parts of a multinational corporate system are often denominated in the same currencies.

c.All the countries in which a firm operates have uniform political and economic institutions.

d.The management personnel of a firm in different countries are fluent in English and several other languages.

e.No nation can place constraints on the transfer of corporate resources.

4) The process of determining the value to which an amount or a series of cash flows will grow in the future when interest on interest is applied is known as _____.

a.discounting

b.compounding

c.amortization

d.consolidation

e.annualizing

5) Zync Corporation decides that instead of simply offering a block of its debt securities for sale to the investment banker that submits the highest price, it should come up with a plan with a single investment banker. The procedure that the company has decided to follow is known as a _____.

a.best-efforts arrangement

b.competitive bid

c.negotiated deal

d.trade-through arrangement

e.financial intermediation