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Certified Business Manager (CBM) Questions 126–130 (page: 27)

Updated On: 10-Feb-2026

Pricing is a static element.

  1. True
  2. False

Answer(s): A



Political risks can be broken down into which of the following risks?

  1. Systematic risks, Country risks, Foreign-Exchange risks
  2. Credit risks, operating risks, ownership risks
  3. Market Risks, Liquidity Risks, ownership risks
  4. transfer risks, operating risks, ownership risks

Answer(s): D



The risks stem from government policies and procedures that directly constrain the international management and performance of local business activities is known as:

  1. Foreign-Exchange risks
  2. Operating risks
  3. Market risks
  4. Functional risks

Answer(s): B



The transfer of ownership by the host government to a domestic entity with payment of compensation is called:

  1. Expropriation
  2. Domestication
  3. Local content
  4. All of the above

Answer(s): A



What the simplest from the administrative point is of view because it emphasizes the basic tasks of the firm?

  1. Customer structure
  2. Organizational structure
  3. Functional structure
  4. Statistical structure

Answer(s): C



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