Multinational Business Finance 14th Edition By David K. Eiteman – Test Bank

Multinational Business Finance 14th Edition By David K. Eiteman – Test Bank

Multinational Business Finance, 14e (Eiteman)

Chapter 4   Financial Goals and Corporate Governance

4.1   Who Owns the Business?

1) Foreign stock markets are frequently characterized by controlling shareholders for individual publicly traded firms. Which of the following is NOT identified by the authors as typical controlling shareholders?

A) the government (for example, privatized utilities)

B) institutions (such as banks in Germany)

C) family (such as in France)

D) All of the above were identified by the authors as controlling shareholders.

Answer:  D

Diff: 1

L.O.:  4.1 Who Owns the Business?

Skill:  Recognition

AACSB:  Application of knowledge

2) Which of the following is NOT typically associated with the public ownership of business organizations?

A) the state

B) the government

C) families

D) civil society

Answer:  C

Diff: 1

L.O.:  4.1 Who Owns the Business?

Skill:  Recognition

AACSB:  Application of knowledge

3) Which of the following is NOT typically associated with the private ownership of business organizations?

A) the government

B) families

C) individuals

D) publicly traded, widely-held organizations

Answer:  A

Diff: 1

L.O.:  4.1 Who Owns the Business?

Skill:  Recognition

AACSB:  Application of knowledge

4) State Owned Enterprises (SOEs):

A) are a form of public ownership.

B) are created for commercial activities rather than civil or social activities.

C) are the dominant form of business organization in some countries.

D) are all of the above.

Answer:  D

Diff: 1

L.O.:  4.1 Who Owns the Business?

Skill:  Recognition

AACSB:  Application of knowledge

5) The problems that may arise due to the separation of ownership and management in large business organizations are known as:

A) separation anxiety.

B) the agency problem.

C) corporate disconnect theory.

D) none of the above

Answer:  B

Diff: 1

L.O.:  4.1 Who Owns the Business?

Skill:  Recognition

AACSB:  Application of knowledge