Assume That Subsidiaries X and Y Often Trade with Each

question 45

Multiple Choice

Assume that Subsidiaries X and Y often trade with each other. Assume that Subsidiary X has excess cash while Subsidiary Y is short on cash. How can Subsidiary X help out Subsidiary Y?

• A) X should lag its payments sent to Y to pay for imports from Y.
• B) X should request that Y lead its payments to be sent for goods that Y sent to X.
• C) A and B
• D) None of the above

---

Definitions:

Groupthink

A psychological phenomenon where the desire for group consensus overrides individuals' ability to evaluate alternatives critically.

Advertising Agency

A service-based business dedicated to creating, planning, and handling advertising and sometimes other forms of promotion for its clients.

Nutrition Bar

A snack bar designed to provide nutritional value, often used as a meal replacement or supplement.

Team Management

The process of leading a group of individuals to achieve a common goal through planning, organizing, and controlling.