Which of the Following Are Advantages of Netting

question 29

Multiple Choice

Which of the following are advantages of netting?
V.Avoiding transaction costs
VI.Shifting profits to different subsidiaries
VII.Avoiding taxes for the parent firm
VIII.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:

Inventory

The complete list of items such as goods, materials, and merchandise that a business holds with the intent to sell.

CPA

Certified Public Accountant, a professional designation given to qualified accountants who have passed a licensing examination in their jurisdiction.

Security Interest

A legal claim on assets which are given to secure a loan and ensure the repayment of debt.

Debtor

A debtor is an individual or entity that owes a debt to another party, usually a sum of money.