Which of the Following Is NOT an Objective of International

question 14

Multiple Choice

Which of the following is NOT an objective of international cash management by MNCs?

• A) To increase the firm's liquidity.
• B) To increase the firm's returns on investment.
• C) To ensure that all subsidiaries have the same pattern of cash flows.
• D) To reduce foreign exchange risk.

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Definitions:

Supply Conditions

Factors that affect the quantity of a good or service that producers are willing and able to sell at a given price.

Excise Tax

A tax on the manufacture, sale, or consumption of certain goods and services within a country.

Tax Burden

The measure of the total amount of taxes paid by individuals or businesses, often expressed as a percentage of income or GDP.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.