________ is an important cash-management strategy that reduces transaction costs by coordinating cash inflows and outflows among subsidiaries.

Question

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Netting involves consolidating the payables and receivables within a company and offsetting them against each other. This reduces the number of transactions that need to take place between subsidiaries, ultimately reducing transaction costs. Netting is a common cash-management strategy used by multinational corporations to improve efficiency and manage risk. Options A, B, and C are not related to cash management strategies that involve reducing transaction costs among subsidiaries.

________ Is an Important Cash-Management Strategy That Reduces Transaction Costs