Which of the Following Allows a Multinational Firm to Reduce

question 74

Multiple Choice

Which of the following allows a multinational firm to reduce the transaction costs that arise when many transactions occur between its subsidiaries?

• A)Unbundling
• B)Deferral principle
• C)Fronting loan
• D)Multilateral netting

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Definitions:

Observed Frequency

The observed frequency is the actual number of times an event occurs in a dataset or experiment.

Expected Frequency

Expected frequency is a term in statistics indicating the number of times an outcome is anticipated to occur within a set of observations, based on probability.

Sampling Distribution

The distribution of probabilities for a statistic that is based on a random sample.

Chi-squared Distribution

A distribution that arises from the sum of the squares of a number of independent random variables.