国际金融原书第12版教学课件作者大卫艾特曼DavidEiteman阿瑟斯通西chapter02课件

MultinationalBusinessFinance,12e(Eiteman,etal)

Chapter2FinancialGoalsandCorporateGovernance

2.1WhoOwnstheBusiness?

MultipleChoice

1)Foreignstockmarketsarefrequentlycharacterizedbycontrollingshareholdersfortheindividualpubliclytradedfirms.WhichofthefollowingisNOTidentifiedbytheauthorsastypicalcontrollingshareholders?

A)Thegovernment(forexample,privatizedutilities).

B)Institutions(suchasbanksinGermany).

C)Family(suchasinFrance).

D)Alloftheabovewereidentifiedbytheauthorsascontrollingshareholders.

Answer:D

Diff:1

Topic:2.1WhoOwnstheBusiness?

Skill:Recognition

True/False

1)IntheU.S.andU.K.stockmarketsarecharacterizedbyownershipoffirmsconcentratedinthehandsofafewcontrollingshareholders.Incontrast,therestoftheworldtendstohavemorewidespreadownershipofshares.

Answer:FALSE

Diff:1

Topic:2.1WhoOwnstheBusiness?

Skill:Recognition

2.2WhatIstheGoalofManagement?

MultipleChoice

1)"Maximizecorporatewealth"

A)istheprimaryobjectiveofthenon-Anglo-Americanmodelofmanagement.

B)asamanagementobjectivetreatsshareholdersonaparwithothercorporatestakeholderssuchascreditors,labor,andlocalcommunity.

C)hasabroaderdefinitionthanjustfinancialwealth.

D)alloftheabove

Answer:D

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

2)TheShareholderWealthMaximizationModel

A)combinestheinterestsandinputsofshareholders,creditors,management,employees,andsociety.

B)isbeingusurpedbytheStakeholderCapitalismModelasthosetypesofMNEsdominatetheirglobalindustrysegments.

C)clearlyplacesshareholdersastheprimarystakeholder.

D)isthedominantformofcorporatemanagementintheEuropean-Japanesegovernancesystem.

Answer:C

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

3)TheStakeholderCapitalismModel

A)clearlyplacesshareholdersastheprimarystakeholder.

B)combinestheinterestsandinputsofshareholders,creditors,management,employees,andsociety.

C)hasfinancialprofitasitsgoalandisoftentermedimpatientcapital.

D)istheAnglo-Americanmodelofcorporategovernance.

Answer:B

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

4)IntheAnglo-Americanmodelofcorporategovernance,theprimarygoalofmanagementisto

A)maximizethewealthofallstakeholders.

B)maximizeshareholderwealth.

C)minimizecosts.

D)minimizerisk.

Answer:B

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

5)Infinance,anefficientmarketisoneinwhich

A)pricesareassumedtobecorrect.

B)pricesadjustquicklyandaccuratelytonewinformation.

C)pricesarethebestallocatorsofcapitalinthemacroeconomy.

D)alloftheabove

Answer:D

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

6)Systematicriskcanbedefinedas

A)thetotalrisktothefirm.

B)theriskoftheindividualsecurity.

C)theriskofthemarketingeneral.

D)theriskthatcanbesystematicallydiversifiedaway.

Answer:C

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

7)Unsystematicriskcanbedefinedas

A)thetotalrisktothefirm.

B)theriskoftheindividualsecurity.

C)theaddedriskthatafirm'ssharesbringtoadiversifiedportfolio.

D)theriskofthemarketingeneral.

Answer:B

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

8)Thestudyofhowshareholderscanmotivatemanagementtoaccepttheprescriptionsoftheshareholderwealthmaximizationmodeliscalled

A)marketefficiency.

B)theSWMmodel.

C)agencytheory.

D)theSCMmodel.

Answer:C

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

9)UndertheShareholderWealthMaximizationModelofcorporategovernance,poorfirmperformanceislikelytobefacedwithallbutwhichofthefollowing?

A)Saleofsharesbydisgruntledcurrentshareholders.

B)Shareholderactivismtoattemptachangeincurrentmanagement.

C)Asamaximumthreat,initiationofacorporatetakeover.

D)Prisontimeforexecutivemanagement.

Answer:D

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

10)WhichofthefollowingisareasonwhymanagersacttomaximizeshareholderwealthinAnglo-Americanmarkets?

A)Theuseofstockoptionstoalignthegoalsofshareholdersandmanagers.

B)Themarketforcorporatecontrolthatallowsforoutsidetakeoverofthefirm.

C)Performancebasedcompensationforexecutivemanagement.

D)alloftheabove

Answer:D

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

11)WhichofthefollowingisNOTtrueregardingthestakeholdercapitalismmodel?

A)Banksandotherfinancialinstitutionsarelessimportantcreditorsthansecuritiesmarkets.

B)LaborunionsaremorepowerfulthanintheAnglo-Americanmarkets.

C)Governmentsinterferemoreinthemarketplacetoprotectimportantstakeholdergroups.

D)AlloftheaboveareTRUE.

Answer:A

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

12)Thestakeholdercapitalismmodel

A)typicallyavoidstheflawofimpatientcapital.

B)triestomeetthedesiresofmultiplestakeholders.

C)mayleavemanagementwithoutaclearsignalabouttradeoffsamongtheseveralstakeholders.

D)alloftheabove

Answer:D

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

13)WhichofthefollowingisgenerallyNOTconsideredtobeaviableoperationalgoalforafirm?

A)Maintainingastronglocalcurrency.

B)Maximizationofafter-taxincome.

C)Minimizationofthefirm'seffectiveglobaltaxburden.

D)Correctpositioningofthefirm'sincome,cashflowsandavailablefundsastocountryandcurrency.

Answer:A

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

14)Whichofthefollowingoperationalgoalsfortheinternationalfirmmaybeincompatiblewiththeothers?

A)Maintainingastronglocalcurrency.

B)Maximizationofafter-taxincome.

C)Minimizationofthefirm'seffectiveglobaltaxburden.

D)Eachofthesegoalsmaybeincompatiblewithoneormoreoftheothers.

Answer:D

Diff:2

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

15)Theprimaryoperationalgoalforthefirmisto

A)maximizeafter-taxprofitsineachcountrywherethefirmisoperating.

B)minimizethetotalfinancialrisktothefirm.

C)maximizetheconsolidatedafter-taxprofitsofthefirm.

D)maximizethetotalrisktothefirm.

Answer:C

Diff:3

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

True/False

1)Thestakeholdercapitalismmodelholdsthattotalrisk(operationalandfinancial)ismoreimportantthanjustsystematicrisk.

A)True

B)False

Answer:A

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

2)Inrecentyearsthetrendhasbeenformarketstoincreasingfocusontheshareholderwealthformofwealthmaximization.

A)True

B)False

Answer:A

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

3)PatientCapitalismischaracterizedbyshort-termfocusbybothmanagementandinvestors.

Answer:FALSE

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

4)Agencytheorystatesthatunsystematicriskcanbeeliminatedthroughdiversification.

Answer:FALSE

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

5)Thestakeholdercapitalismmodeldoesnotassumethatequitymarketsareeitherefficientorinefficient.

Answer:TRUE

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

6)Thestakeholdercapitalismmodelassumesthatonlysystematicrisk"counts"orisaprimeconcernformanagement.

Answer:FALSE

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

7)Dividendyieldisthechangeinthesharepriceofstockastradedinthepublicequitymarkets.

Answer:FALSE

Diff:1

Topic:2.2WhatistheGoalofManagement

Skill:Recognition

Essay

1)Describethemanagementobjectivesofafirmgovernedbytheshareholderwealthmaximizationmodelandonegovernedbythestakeholderwealthmaximizationmodel.Giveanexampleofhowthesetwomodelsmayleadtodifferentdecision-makingbyexecutivemanagement.

Answer:Shareholderwealthmaximizationattemptstodojustthat,typicallythroughthemaximizationofshareprice.Stakeholderwealthmaximizationismuchmoredifficultbecauseofthenecessitytosatisfymanystakeholdersallhavingapproximatelyequalclaimontheobjectivesofmanagement.Thesestakeholdersmayincludeshareholders,creditors,customers,employees,andcommunity.Differingdecisionsmayoccurinasituationthatinvolvessignificantsocialcosts.Forexample,intheU.S.thedecisiontoshiftproductionfromalocalfactorytoaforeignonemaybeinlargebasedonthechangeinNPVastheresultofthemovewithonlyminorconsiderationoftheimpactthatachangeinlocationwouldhaveonthecommunityatlargeorthelocalemployees.AmanagerofastakeholderdrivenfirmmayplaceequalorgreateremphasisonthelocalemployeesandcommunityandchoosetomaintainthecurrentfacilityratherthanmoveeveniftheforeignoperationprovidedamuchgreaterNPV.Ultimately,thelattermaycauseaninefficientallocationofscarceresourcesandleadtoanoveralllowerstandardofliving.

Diff:3

Topic:2.2WhatistheGoalofManagement

Skill:Conceptual

2.3CorporateGovernance

MultipleChoice

1)WhichofthefollowingbroadtopicsisNOTidentifiedasanareatobeestablishedasgoodcorporategovernancepracticebytheOrganizationforEconomicCooperationandDevelopment(OECD)?

A)Protecttherightsofshareholders.

B)Disclosureandtransparency.

C)Theproperroleofstakeholdersinthegovernanceofthefirm.

D)Alloftheaboveshouldbeaconcernofgoodcorporategovernance.

Answer:D

Diff:2

Topic:2.3CorporateGovernance

Skill:Recognition

2)Therelationshipamongstakeholdersusedtodetermineandcontrolthestrategicdirectionandperformanceofanorganizationistermed________.

A)corporategovernance

B)Anglo-Americanactivism

C)capitalstructure

D)workingcapitalmanagement

Answer:A

Diff:2

Topic:2.3CorporateGovernance

Skill:Recognition

3)Whendiscussingthestructureofcorporategovernance,theauthorsdistinguishbetweeninternalandexternalfactors.________isanexampleofaninternalfactor,and________isanexampleofanexternalfactor.

A)Equitymarkets;executivemanagement

B)Debtmarkets;boardofdirectors

C)Executivemanagement;auditors

D)Auditors;regulators

Answer:C

Diff:2

Topic:2.3CorporateGovernance

Skill:Recognition

4)WhichofthefollowingisNOTcommonlyassociatedwithagovernmentaffiliatedformofcorporategovernanceregime?

A)Nominorityinfluence.

B)Lackoftransparency.

C)Stateownershipofenterprise.

D)Allareassociatedwiththistypeofcorporategovernanceregime.

Answer:D

Diff:2

Topic:2.3CorporateGovernance

Skill:Recognition

5)Generallyspeaking,whichofthefollowingisNOTconsideredanimportantfactorinthecompositionandcontrolofcorporateboardsofdirectors?

A)Thenumberofinsidervsoutsidedirectors.

B)Thetotalnumberofdirectorsontheboard.

C)Thecompositionofthecompensationcommittee.

D)Alloftheaboveareimportantfactorsofboardcomposition.

Answer:D

Diff:2

Topic:2.3CorporateGovernance

Skill:Recognition

6)SignedintolawonJuly30,2002,the________ActrequiresCEOsofpubliclytradedcompaniestovouchfortheveracityofthefirm'spublishedfinancialstatements.

A)Smoot-Hawley

B)Humphrey-Hawkins

C)McCain-Merrill

D)Sarbanes-Oxley

Answer:D

Diff:1

Topic:2.3CorporateGovernance

Skill:Recognition

7)TheSarbanes-