International Corporate Finance 1st Edition Ashok Robin

International Corporate Finance 1st Edition Ashok Robin

ISBN-10. 0073530662 , ISBN-13:978-0073530666

Prolonged-Time interval Financing

Numerous Choice Questions

1. The two kinds of financing that MNCs search in worldwide markets are:
A. short-term and long-term.
B. debt and equity.
C. short-term debt and long-term equity.
D. long-term debt and short-term equity.

2. Numerous the weather which is able to set off MNCs to technique financing differently than dwelling corporations technique financing are:
A. foreign exchange expenses, charges of curiosity, and inflation expenses.
B. their areas, number of staff, and credit score standing.
C. their dimension, data, and selection.
D. alternate expenses, political risk, and monetary risk.

3. One in all many first decisions that an MNC has to make when considering financing is whether or not or to not pursue:
A. interior financing or exterior financing.
B. debt financing or interior financing.
C. public financing or private financing.
D. equity financing or interior financing.

4. MNCs are normally comparatively large organizations, and their dimension affords them two advantages in accessing financial markets. These advantages are that:
A. lenders search them out and provide them loans, and potential rivals try to avoid competing immediately with them.
B. they do not normally need loads money from the financial markets, and, after they do need money, they may borrow at below-market expenses.
C. they may reap the advantages of economies of scale, and their large mounted asset basis reduces risk to lenders.
D. they may search financing anyplace on the earth, and to allow them to insist on top-of-the-line charges of curiosity on the market.

5. One attribute that distinguishes MNCs from dwelling organizations and that makes MNCs larger risks than dwelling organizations is that:
A. MNCs are larger organized than dwelling organizations.
B. dwelling organizations shouldn’t as high-profile as MNCs.
C. MNCs are additional involved with markets than dwelling organizations.
D. MNCs have diversified portfolios of cash motion.

6. MNCs face some factors in arranging financing that dwelling organizations do not face. One amongst these factors is that MNCs:
A. deal in a variety of international forex and MNCs incur losses when these international forex are remodeled into the home foreign exchange of the MNC.
B. are matter to opponents in worldwide worldwide areas that is utterly completely different than the opponents confronted by dwelling corporations.
C. are weak to political and monetary circumstances throughout the worldwide areas the place they perform, and these circumstances can adversely affect the cash motion of an MNC.
D. cannot borrow money domestically as merely as dwelling organizations can borrow money domestically.

7. MNCs face _________________ and _____________________ that will make their cash flows weak that are not confronted by dwelling corporations.
A. nation risk and foreign exchange risk
B. political risk and monetary risk
C. opponents and felony actions
D. declining asset price and rising inflation

8. Traditionally, the primary provide of financing for corporations has been:
A. monetary establishment loans.
B. the sale of securities.
C. the issuance of bonds.
D. transactions in foreign exchange markets.

9. Why have U.S. corporations hottest to finance their operations by public debt markets fairly than by monetary establishment loans?
A. Monetary establishment loans are a lot much less versatile and further public than public debt markets.
B. Monetary establishment loans are usually restricted in amount and value larger than public debt markets.
C. Monetary establishment loans are tougher to accumulate and value larger than public debt markets.
D. Monetary establishment loans are matter to many additional guidelines than public debt markets

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