The CEO of Informatix Co

question 7

True/False

The CEO of Informatix Co.,suggested to the board of directors that if the firm was going to adopt a transnational strategy,rather than having treasury operations situated in the headquarters,the company should relocate this operation to London in order to enhance access to financial markets.Consequently,the treasury operations would still be centralized,but situated in a different location.Flexible specialization,or excentralization,is an important attribute of firms that adopt a transnational strategy.

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit, with the expectation of being repaid.

Operating Cash Flow

A measure of the amount of cash generated by a company's normal business operations over a period of time.

Retained Earnings

Retained earnings represent the portion of a company's profit that is retained within the business rather than distributed to shareholders as dividends, often used for reinvestment.

Dividend

A payment made by a corporation to its shareholders, usually in the form of cash or stock, from its earnings.