By Centralizing Affiliate Credit Policy and Monitoring Collection Performance,parents Companies

question 17

Multiple Choice

By centralizing affiliate credit policy and monitoring collection performance,parents companies can do all of the following but NOT

• A)reduce the investment in receivables
• B)reduce foreign exchange and other transaction costs
• C)reduce banking fees
• D)increase the rate of return on new subsidiary projects

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Definitions:

Price Decreases

Reductions in the cost of goods or services, often leading to increased demand.

Normal Goods

Goods for which demand increases as the income of individuals increases, indicating a positive relationship between income and demand.

Equilibrium Price

This is the price at which the quantity of goods supplied matches the quantity of goods demanded, resulting in market equilibrium.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity demanded by consumers at those prices.