29 Questions
Which group can be considered stakeholders of a company?
Suppliers, communities, and governments
What is the role of a stakeholder in a company?
Both affect and be affected by a business' operations
What is included in the concept of corporate social responsibility?
Communities, governments, and trade associations
What do institutional frameworks consist of?
Legal regulations and social norms
What are the features of international finance?
Formal laws and economic variables
Why is speaking the language of the country beneficial for conducting business abroad?
Facilitates communication and understanding
What does corporate governance primarily involve?
Balancing the interests of various stakeholders
Which of the following is a goal of corporate governance?
Enhancing accountability and transparency
How can bad corporate governance affect a company?
It can create doubt about the company's operations
What are the basic principles of corporate governance?
Accountability, transparency, fairness, and responsibility
Which term is used to describe the interdependence of the world's economies and cultures?
Globalization
What does trade liberalization involve?
Reducing restrictions on the free exchange of goods between nations
What term is used to describe companies with budgets larger than those of many small countries?
Transnational corporate organizations
Which term refers to the current value of any currency for another currency, with rates fluctuating constantly due to economic and political events?
Currency Exchange rate
What is a requirement for publicly traded corporations in terms of their financial statements?
Publicize financial statements with specific accounting standards
Which of the following is NOT considered an internal stakeholder in a corporation?
Customers
What term describes the growing interdependence of the world's economies, involving the flow of investments and information?
Economic integration
Why is it important for financial managers to adopt and understand international finance?
To navigate global economic complexities
What is the main goal of trade liberalization?
To decrease the cost of goods in importing countries
Which of the following is a key feature of economic integration?
Aim to reduce costs for consumers and producers
What makes a corporation a multinational corporation (MNC)?
Facilities and assets in at least one country other than its home country
How does trade liberalization impact weaker economies?
It puts weaker economies at a greater disadvantage
Which of the following is NOT a barrier to trade that trade liberalization aims to remove?
Sanctions
What is the primary benefit of economic integration for nations involved?
Reduction in costs for both consumers and producers
What is the term used to describe having business outside your country where raw materials are present and other economies of scale?
Expanded opportunity cost
How does the volatility of currency in trade affect a business?
Foreign Exchange risk
In economics, what do we call the combination of 2 or more market structures with various frictions and impediments preventing markets from functioning well?
Market imperfection
What can cast doubts not only in a company's operations but also its profit according to the text?
Corporate governance
Which term describes the legal, cultural, and societal variables that constitute key features of a geographic area and influence institutional actions?
Legal Framework
Test your knowledge on corporate social responsibility and stakeholders with this quiz. Learn about the different types of stakeholders and their impact on a company's operations and performance.
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