Styles Text Box 21 si When Nestlé, a Swiss firm, bought the American firm Carnat
ID: 2619058 • Letter: S
Question
Styles Text Box 21 si When Nestlé, a Swiss firm, bought the American firm Carnation, it was engaged in foreign direct investment. If Nestlé had only bought a non-controlling number of shares of the firm Question 4 options Nestlé would have been engaged in portfolio investment Nestlé would have been engaged in a domestic acquisition It would depend if they bought the shares from an American or a Canadiarn None of the above. According to the theory of optimum currency areas, Question 6 options: The relevant criterion for identifying and designing a common currency zone is the degree of factor (i.e, capital and labor) mobility within the zone Exchange rates should reflect the degree to which workers are willing to move to get a better job. Exchange rates are determined by portfolio managers seeking the highest return None of the above. The cost of compliance with the Sarbanes-Oxley Act of 2002 Question 9 options: Is a small amount, since most firms were playing by rules to begin with Can be oncrous and expensive ls paid for with tax credits for firms found to be in compliance. all of the above One way to measure the value of private benefits of control Question 10 options: Is to measure the difference in value between non-voting shares and voting shares Is to measure the value of the "block premium the value difference between the price per share paid for a control block of shares versus the exchange price after the announcement of the control transaction. Both a) and b) Noee of the above In the U.S., corporate governance reform has included all of the following except: Question 11 options Strengthen the independence of boards of directors Enhancing the transparency and disclosure of financial statensents Energizing the regulasory an monisoring functions of the SEC Reauirine auditors to sit on the boards of directoes Print Layout view Sec 1 Pages: 1 of 1 words: 304 of 100% 25 MacBoExplanation / Answer
4) If Nestle would have bought non-controlling shares, it is a foreign portfolio investment as it is not having a controlling interest in the company.
6) "A" is the answer
Explanation, The Theory was based on bringing entire region under one currency and the Entire area can be under one workforce and capital is the main idea behind this economic theory.
9) The SOX compliance is Onerous and Expensive, as it requires independent audit reports and other compliance requirements for better transparency.
10) "C" Both A and B, it
11) "D", Does not require auditors to sit on he boards of directors.