Why Might a Subsidiary Company Retain Their Own Identity

question 39

Multiple Choice

Why might a subsidiary company retain their own identity?

• A)Maintain their market identity.
• B)Enable the parent company to retain a limited liability status.
• C)Allow their staff to remain autonomous.
• D)All of the above.

Identify the reasons for holding cash and the concept of precautionary demand for cash.

Understand how lockbox systems and float management can improve a firm’s cash management.

Recognize the trade-offs involved in carrying either too much or too little cash.

Grasp the financial implications of different short-term financing options and cash management practices.

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Definitions:

Design Thinking

A methodology used for solving complex problems and finding desirable solutions for clients. It draws upon logic, imagination, intuition, and systemic reasoning, to explore possibilities of what could be and to create desired outcomes that benefit the end user.

Human-Centric

An approach that places human values, needs, and well-being at the center of decision-making and development processes.

Empathic Understanding

The ability to understand and share the feelings of another person from their perspective as a means to better cater to their needs and expectations.

Business Analysis

The practice of identifying business needs and determining solutions to business problems.