In the context of working capital management in MNCs,credit policy involves consideration of:
A) optimizing cash balances across countries where the MNC operates.
B) pricing and credit terms.
C) currency risk and local market conditions.
D) credit rating of customers and competition.
Correct Answer:
Verified
Q1: The most liquid of assets and a
Q2: The theory that excessive cash balances lead
Q3: The traditional argument for maintaining small cash
Q4: Higher opportunity costs call for:
A)higher cash balances.
B)more
Q5: Higher currency risk calls for:
A)avoiding countries with
Q7: What are opportunity costs in the context
Q8: Why have opportunity costs of maintaining cash
Q9: In making short-term investments,firms consider:
A)creditworthiness of the
Q10: What sort of bad decisions do excessive
Q11: Explicit transaction costs,such as _ have been
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