When a Company Expands from Having One Facility in Another

question 39

Multiple Choice

When a company expands from having one facility in another country to having a number of facilities in different countries,it is transforming from a(n)

• A)domestic company to a global company.
• B)domestic company to an international company.
• C)international company to a multinational company.
• D)multinational company to an international company.
• E)global company to an international company.

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Definitions:

Cash Management

The strategy of collecting, managing, and investing cash in a way that enables the company to meet its financial obligations while maximizing liquidity.

Lockbox System

A lockbox system is a banking service used by companies to expedite the collection and processing of accounts receivable by having checks mailed directly to a bank-operated address.

Collection Time

The average period that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients.

Preauthorized Payments

Financial arrangements allowing a payee to automatically withdraw money from a payer's bank account for recurring bills or subscriptions.