Question : True / False Questions 1. An international joint venture involves the creation : 1267493

True / False Questions
 

1. An international joint venture involves the creation of a new company that is owned by two or more firms from different countries. 
 

 

2. In a planned economy, ownership of land and the means of production are private, and markets dictate the allocation of resources and the output among segments of the economy. 
 

 

3. Differences in accounting practices among countries reflect the different sources of capital in those countries. 
 

 

4. A wholly owned international subsidiary exists when a company owns 100% of the equity in a U.S. foreign subsidiary. 
 

 

5. Although cultural differences are significant in business dealings, they pose no difficulties to the design and implementation of an accounting system. 
 

 

6. In a planned economy, the government uses central planning to allocate resources and determines output among various segments of the economy. 
 

 

7. The standards issued by the International Accounting Standards Board must be followed by all multinational companies. 
 

 

8. An exchange rate represents the price of one currency stated in terms of another. 
 

 

9. Having a liability that is fixed in terms of a foreign currency results in a loss for the debtor if the exchange rate falls between the transaction date and the payment date. 
 

 

10. The statement that "the yen has fallen against the dollar" means that the yen has become less valuable relative to the dollar.