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:

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount loaned.

Income

The financial gain (earned or unearned) accruing over a given period of time.

Utility Functions

Mathematical expressions used in economics to represent a consumer's preference ranking for various bundles of goods.

Consumption

The utilization of goods and services by households or individuals to satisfy their needs and wants.