Answer the following question, multiple choices.

1. Chris Simmon, the head of Trion International Group, wishes to use behavioral incentives as a control mechanism. However, the board of directors is not convinced with the idea. They argue that individual incentives would lead to unintended consequences of limiting efforts to collaborate and teach coworkers. Which of the following suggestions can Chris make to justify that using behavioral incentives in the right manner can be beneficial for the company?

A. Offering cross-unit incentives only to the senior leaders of the company

B. Discarding the grant of status symbols as incentives

C. Eliminating profit-sharing

D. Replacing financial incentives with innovative sources of motivation

2. Joshua is a leadership development analyst at ComNations. He asserts that his company needs global leadership among individuals who can influence decisions that are made across national borders, but it struggles to develop people with global leadership skills. Which of these statements supports his assertion?

A. Low-level managers lack the interest to develop their own global leadership as a high priority.

B. Low-level managers rate competencies like strategic thinking and execution as low priority.

C. Leadership development programs help managers create plans that identify the training and experiences necessary to lead in a global environment.

D. Effective global leaders become who they are by maintaining standard ways to interpret the world.

3. As the managing director of EQ Solutions, Robert Cavalrie believes that having a global mind-set means bringing in the best ideas from different locations and being open to doing things differently. Which of these statements opposes his assertion?

A. Applying a global mind-set is all about understanding what is going on in the world.

B. Managers with a global mind-set are better than their peers at bringing together ideas from diverse country contexts.

C. Having a global mind-set helps a leader understand and observe the underlying needs of customers.

D. Managers with a global mind-set scan the global environment and use this information to change their behaviors and those of people around them.

4.Harrison is a manager at Delta Inc., a computer manufacturing company. He believes that Delta should produce all computer components in-house rather than buying them elsewhere. Which of the following is a true statement that supports his belief?

A. Making components in-house can help a firm maintain control of sensitive knowledge.

B. Producing components in-house can help a firm develop production expertise with minimum time and effort.

C. Producing components in-house can make it easy for a firm to achieve economies of scale.

D. In-house producers have the same incentives as external suppliers to produce high-quality products.

5.Darren, a manager at Bronze Inc., believes that it is better to produce offshore than domestically. Which of the following is a true statement that supports his belief?

A. A company can take advantage of low labor costs in offshore locations.

B. A company can follow a single pricing strategy in all markets by producing offshore.

C. A company can evade taxation in offshore locations.

D. A company can avoid government intervention in offshore locations.

6.Given below is the data regarding investments of AlliTen Inc.:

Market value of the companys equity = $600,000, market value of the companys debts = $500,000, total market value = $1.1 million, cost of equity = 0.8%, before-tax cost of debt = 0.6%, and corporate tax rate is 35%.

Calculate the weighted average cost of capital of AlliTen Inc.

A. 4%

B. 5.1%

C. 6.1%

D. 7%

7.Unlike the Generally Accepted Accounting Principles (GAAP), the International Financial Reporting Standards (IFRS):

A. is developed by the United Nations Organization.

B. is developed by a for-profit organization.

C. requires percentage-of-completion when reliable estimates can be made while considering revenue recognition for long-term construction contracts.

D. requires cost recovery method when reliable estimates cant be made while considering revenue recognition for long-term construction contracts.