By Pooling Cash Resources Centrally Firms Can

question 30

Multiple Choice

By pooling cash resources centrally firms can:

• A) better handle short-term cash needs of subsidiaries.
• B) increase liquidity of independent subsidiaries.
• C) reduce the total size of the cash pool it must hold.
• D) avoid government-imposed restrictions on capital flows.

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Definitions:

Multichannel

Multichannel refers to the use of multiple means or platforms to interact with consumers or conduct business, including physical locations and online presence.

Single Phase

Refers to a one-stage process or an electrical power supply that involves only one alternating waveform.

Multiphase

Pertaining to a process or system that involves several distinct stages or phases.

Queuing Situation

A scenario where entities wait in line for a service or resource, leading to analysis for efficient management of waiting times and service processes.