Busıness Fınance Iı

Yanıt Açıklaması: Equity partnership: A company’s purchase of stock (resulting in a less than controlling interest) in another company or a two-way exchange of stock by the two companies. An equity interest in a partnership is generally accounted for by each partner in the same manner as an equity investment in a corporation, provided that recourse for partnership liabilities is limited to partnership assets (Finnerty, 2007). The correct answer is B.

Yanıt Açıklaması: Loan is not correct.

Yanıt Açıklaması: The dividend irrelevance theory states that a company’s dividend policy has no effect on whether its value or its cost of capital.

Yanıt Açıklaması: Horizontally integrated multinational corporation involves the production of essentially the same product in different countries. The main object here is for the corporation to continue to grow by the means of expansion into many different types of new markets. The correct answer is E.

Yanıt Açıklaması: Dividend signaling hypothesis, also called, dividend information content hypothesis stating that if there is a larger than expected dividend increase, it signals to investors that managers anticipate bright future prospects of the company. On the contrary, if the dividend decreases or it is less than expected, it signals to investors that managers forecast poor future earnings.

Yanıt Açıklaması: Exporting: It is the most popular low-risk entry strategy as it involves little investment and exit is unproblematic.

Yanıt Açıklaması: Risk is defined as the probability of facing loss or unintended consequences.

Yanıt Açıklaması: Close market Repurhase is not one of them.

Yanıt Açıklaması: Franchising Alliance: A kind of alliance where a privilege given to a dealer by a manufacturer or franchise service organization to sell the franchiser’s products or services in a given area, with or without exclusivity. Such an alliance can be formed by using a franchise agreement, which may include franchisers’ consultation, assistance, and financing. Franchise is a kind of licensing agreement, which is specialized in selling another firm’s products or services (DePamphilis, 2003). Yhe correct answer is C.

Yanıt Açıklaması: Market risk can be defined as the risk related to a financial institution’s financial condition resulting from unexpected market movements in the price level of certain risk factors. These risk factors can be categorized into four main classes: equity prices, commodity prices, foreign exchange rates, and interest rates.

Yanıt Açıklaması: Contract Manufacturing and Service Provision: Firms often prefers to outsource production and the main form of outsourcing in many industries is a contract manufacturing agreement. Outsourcing allows a firm to concentrate on enhancing products by focusing on R&D, marketing and design while enjoying the cost advantages brought in by the expertise of contract manufacturers (CM). For decades, many of the MNCs outsource production in different countries in order to benefit the labor cost advantages, as well as the logistical proximity. The best example is specified as Nike that distinguishes design, product development, and marketing from shoe and clothing manufacturing geographically. The correct answer is D.

Yanıt Açıklaması: The correct answer is A.

Yanıt Açıklaması: Conglomerate multinational corporation produces a different range of products in different countries.

Yanıt Açıklaması: it should be as A

Yanıt Açıklaması: Since the accurate forecasts of extreme realizations are crucial to VaR analysis, the EVT approach has the potential to perform better than the VCV, MC simulation, and HS approaches. The correct answer is E.

Yanıt Açıklaması: Conglomerate M&A is a form of business combination between two unrelated firms in different industries. The correct answer is E.

Yanıt Açıklaması: Forms of M&As Horizontal M&A is a form of business combination between two firms in the same industry. Vertical M&A is a form of business combination between two firms of which one them is a supplier, or a customer to another. Congeneric M&A is a form of business combination between two firms in very similar industries, which are not in any horizontal or vertical relationship. Conglomerate M&A is a form of business combination between two unrelated firms in different industries. Cross-border M&A is a form of business combination between two firms in two different countries.

Yanıt Açıklaması: The General Agreement on Tariffs and Trade (GATT) which was signed in 1947.

Yanıt Açıklaması: It should be stock split stock

Yanıt Açıklaması: It should be dividend signaling hypothesis