There Are Several Areas of Competitive Advantage for MNEs That

There are several areas of competitive advantage for MNEs that favor centralization of cash management rather than devolving cash management responsibility to the individual operating subsidiaries. These include all except which of the following statements?

A) When a company centralizes its cash management operations, money in the corporate system is concentrated rather than being dispersed. There are economies of scale in several dimensions when dealing with larger cash flows.
B) There are diversification advantages to centralization because lower precautionary cash balances can be carried at the central pool without increasing the risk of a cash shortage.
C) There can be tax advantages if the location of the centralized cash management operation is in a tax haven country that imposes low or no taxes on most transactions, has highly sophisticated financial services capabilities, and maintains strict secrecy.
D) None of the statements above; all are reasons for centralizing cash management activities.