Question 1

Which of the following statements about the sources of stakeholder conflict is true?

Options :

A : Different stakeholders have different objectives

B : The various stakeholders have differing degrees of influence

C : Stakeholder conflict only occurs in not-for -profit organizations

D : Stakeholders with high interest sometimes have limited influence

Answer: A

Question 2

Company A is looking to protect itself from transaction exchange rate risk.

Company A does not require 100% of the value of transaction to be protected, and it would like the method it uses to have the following characteristics

* An agreed exchange rate for a specified period where both parties have a legal obligation

* A separation of the contract guaranteeing the pnce of the currency from the underlying transaction.

Which of the following would best provide the type of protection from exchange rate risk company A wants?

Options :

A : Future

B : Option

C : Forward contract

D : Floating exchange rate

Answer: C

Question 3

All of the following are examples of externalities except which one?

Options :

A : Pollution resulting from a production process

B : Firms training workers who then move to other employers

C : Some consumers being unable to afford goods because prices have been driven up by the demand from other consumers

D : Road congestion caused by rush hour traffic on the roads

Answer: C

Question 4

Based on historical time series data, a chemicals company uses sales ($million) as the y variable and time (year) as the x variable and equation.

y = - 3935 47 + 2 02x

Using the equation, what is the company's predicted sales for the year 2020? Give your answer to the nearest million.

Options :

A : $15 million

B : $25 million

C : $35 million

D : $45 million

Answer: A

Question 5

Globalization will have all the following effects on businesses except one. Which ONE is the exception?

Options :

A : Access to cheaper sources of supply in emerging economies

B : Increased competition on world markets for manufactured goods

C : Decreased international transportation and communications costs

D : The ability to shift production to low cost locations

Answer: C