Multinational Cash Management

question 49

Multiple Choice

Multinational cash management

• A)is really no different for a MNC than for a purely domestic firm in a closed economy.
• B)concerns itself with the size of cash balances, their currency denominations, and where these cash balances are located among the MNC's affiliates.
• C)concerns itself with the size of cash balances and their currency denominations, but not where these cash balances are located among the MNC's affiliates, since intra-affiliate default risk is not an issue.
• D)none of the above

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Definitions:

Repetitive Focus

This refers to the concentration on repeating tasks or procedures to improve efficiency or skill.

Flash Frozen

A process of freezing foods or substances rapidly to preserve freshness and minimize ice crystal formation.

Fixed Costs

Business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume.