Which of the Following Are Advantages of Netting

question 5

Multiple Choice

Which of the following are advantages of netting?
I.Avoiding transaction costs
II.Shifting profits to different subsidiaries
III.Avoiding taxes for the parent firm
IV.Increasing flexibility in the parent firm

• A) I only
• B) II only
• C) I and IV
• D) II, III, and IV

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Definitions:

Channel

A medium through which a message is transmitted from a sender to a receiver.

Channel Noise

Channel noise is interference or distortion that disrupts the clarity of a message being communicated between a sender and receiver across a channel.

Malpractice Insurance

A type of liability insurance protecting professionals against claims of negligence or incompetence from their clients.

Quantity Enhances Quality

The idea that increasing the amount of something may indirectly improve its quality or value.