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web.groovymark@gmail.com
- December 7, 2024
Question 41
What is a key characteristic of angel investors?
a) They provide funding only to well-established companies
b) They typically offer large amounts of capital in exchange for equity
c) They provide funding and mentorship to early-stage startups
d) They raise capital through crowdfunding platforms
Answer: c) They provide funding and mentorship to early-stage startups
Explanation:
Angel investors are individuals who provide financial support and often mentorship to early-stage startups, helping them grow in exchange for equity or convertible debt.
Question 42
Which exchange rate system allows currencies to fluctuate based on market forces without government intervention?
a) Fixed exchange rate
b) Pegged exchange rate
c) Floating exchange rate
d) Currency board
Answer: c) Floating exchange rate
Explanation:
In a floating exchange rate system, the value of a currency is determined by market forces such as supply and demand, and it fluctuates without direct government intervention.
Question 43
Which law governs international sales of goods between businesses located in different countries?
a) Uniform Commercial Code (UCC)
b) Sherman Antitrust Act
c) UN Convention on Contracts for the International Sale of Goods (CISG)
d) Clayton Act
Answer: c) UN Convention on Contracts for the International Sale of Goods (CISG)
Explanation:
The CISG is a treaty that governs the international sale of goods between businesses located in different countries, providing a consistent legal framework for cross-border transactions.
Question 44
What is the purpose of antidumping laws in international trade?
a) To prevent foreign companies from selling goods at below-market prices
b) To encourage domestic companies to export goods
c) To promote free trade between countries
d) To protect consumers from defective products
Answer: a) To prevent foreign companies from selling goods at below-market prices
Explanation:
Antidumping laws are designed to protect domestic industries by preventing foreign companies from selling products at artificially low prices, which can harm local businesses.
Question 45
Which agreement was implemented in 1994 to create a free trade zone between the U.S., Canada, and Mexico?
a) CAFTA-DR
b) MERCOSUR
c) ASEAN
d) NAFTA
Answer: d) NAFTA
Explanation:
The North American Free Trade Agreement (NAFTA) was established in 1994 to create a free trade zone between the U.S., Canada, and Mexico, reducing tariffs and promoting cross-border trade.
Question 46
What is the main objective of the Clean Water Act in the U.S.?
a) To regulate air pollution from industrial sources
b) To set limits on water pollutants discharged into U.S. waterways
c) To control hazardous waste disposal
d) To reduce greenhouse gas emissions
Answer: b) To set limits on water pollutants discharged into U.S. waterways
Explanation:
The Clean Water Act aims to protect the integrity of U.S. water bodies by setting maximum permissible levels of pollutants that can be discharged into waterways, ensuring water is safe for public use and wildlife.
Question 47
Which financing strategy involves borrowing capital in exchange for the promise to repay the principal plus interest?
a) Equity financing
b) Debt financing
c) Venture capital
d) Crowdfunding
Answer: b) Debt financing
Explanation:
Debt financing involves borrowing money from lenders with the agreement to repay the loan amount (principal) along with interest over a specified period.
Question 48
What is the primary benefit of using a diversification strategy in global business?
a) To minimize the risk by spreading investments across different markets
b) To standardize products for all markets
c) To reduce production costs by centralizing operations
d) To maximize profits in the home country
Answer: a) To minimize the risk by spreading investments across different markets
Explanation:
Diversification involves entering different markets or industries to spread risk, so that if one market faces challenges, the business has other revenue streams to rely on.
Question 49
What is a primary disadvantage of a high power distance culture in business?
a) Lack of clear leadership
b) Employees may feel disconnected from decision-making
c) Excessive focus on individualism
d) Ineffective communication between peers
Answer: b) Employees may feel disconnected from decision-making
Explanation:
In high power distance cultures, decision-making is often concentrated at the top levels of the hierarchy, leaving lower-level employees feeling disengaged or powerless in the organizational process.
Question 50
Which agreement focuses on reducing greenhouse gas emissions globally?
a) Kyoto Protocol
b) Clean Water Act
c) Paris Agreement
d) Environmental Protection Act
Answer: c) Paris Agreement
Explanation:
The Paris Agreement is a global climate accord that aims to limit global temperature increases by reducing greenhouse gas emissions and fostering sustainable development practices.
