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:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and stockholders' equity at a specific point in time.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Cost of Goods Sold

The specific expenses borne for the production of products a company sells, covering materials and workforce.

Income Tax Expense

The cost associated with taxes on earnings, calculated based on the applicable tax rates and laws.