Question
_____________________ are the taxes that a subsidiary must pay to its host country when the subsidiary pays dividends to its parent MNC. a. Reparation taxes
- _____________________ are the taxes that a subsidiary must pay to its host country when the subsidiary pays dividends to its parent MNC.
a. Reparation taxes
b. Excess profit taxes
c. Income taxes
d. Withholding taxes
- International projects are often undervalued when traditional capital budgeting approaches are used because traditional capital budgeting approaches:
a. use too many estimates of value.
b. use unrealistic discount rates.
c. are inadequate with regard to international projects.
d. do not consider the value of real options.
- If a firm plans a project so that it can, if necessary, not pursue the project, it has a real option to:
a. alter scale.
b. reject.
c. abandon.
d. alter inputs.
- If a firm expects that if it undertakes a specific project the experience gained from that project will lead it to other related opportunities, that project includes the:
a. possibility of the need for additional funding.
b. real option to grow.
c. real option to alter inputs.
d. opportunity for additional profits.
- What benefit can the CFO of a firm contribute to the process of considering and selecting new projects for the firm to pursue?
a. The CFO is the second most powerful position in a firm, and the backing of the CFO can ensure the success of a project.
b. The CFO has a view of the firm as a whole and can understand how a proposed project fits into the firms overall strategy and how a proposed project can add value to the firm.
c. The CFO makes the final decision on the expenditure of funds by the firm, so the CFO has to approve of a new project if it is going to go forward.
d. The CFO is ultimately responsible for the success or failure of projects, so the CFO has to approve a project before it can be undertaken.
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