Not All Countries Allow MNCs the Freedom to Net Payments

question 96

Multiple Choice

Not all countries allow MNCs the freedom to net payments,

• A)by limiting netting, more needless foreign exchange transactions flow through the local banking system.
• B)MNCs can avoid these restrictions by using a Centralized Cash Depository.
• C)MNCs can avoid these restrictions by using wire transfers.
• D)both b and c

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods.

Operating Expenses

Costs associated with a company's main operational activities, excluding direct materials, direct labor, and other direct costs, such as rent, utilities, and salaries.

Gross Profit

A financial measurement obtained by deducting the cost of goods sold from the overall sales revenue.

Written Evidence

Documented proof or records that support claims or events, often used in legal and financial contexts.