An Advantage of Netting of a Multinational Corporation and Its

question 49

Multiple Choice

An advantage of netting of a multinational corporation and its subsidiaries is that it:

• A) increases foreign exchange risk.
• B) decreases the total volume of inter-subsidiary fund flows.
• C) increases the total amount of currency conversion.
• D) decreases the number of employees.

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Definitions:

Cephalocaudal Development

The developmental principle that growth follows a pattern that begins with the head and upper body parts and then proceeds down to the rest of the body.

Proximodistal Development

A developmental principle where growth starts at the center of the body and progresses outwards to the extremities.

Maturity

The state of being fully developed physically or emotionally, or exhibiting behaviors typical of well-developed individuals.

Deposition

A pretrial sworn and recorded testimony of a witness that is acquired out of court with no judge present.