Over time, there has been a high correlation between actual rates of return on securities and the

Which of the following is true with regard to strategies for minimizing the risks of global sourcing?

A) To ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources. B) To maximize returns and minimize risks, management should outsource core business operations. C) Because production quality in an emerging market rarely varies over time, managers at the focal firm are not obliged to closely monitor manufacturing processes. D) Firms must refrain from maintaining their own sourcing operations abroad in order to trim costs and minimize risks stemming from frequent currency fluctuations.

How is reporting for other comprehensive income (OCI) different between U.S. GAAP and IFRS?

A) U.S. GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach using the direct method. B) U.S. GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach and allow more items to be classified as OCI. C) Both U.S. GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS require the direct method. D) Both U.S. GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS allow more items to be classified as OCI.