In an attempt to control an affiliate's cash reserves,corporate management may present local managers with interest rates for borrowing or lending funds that reflect the opportunity cost of money to the parent corporation.These interest rates are known as
A)imputed rates
B)internal interest rates
C)corporate prime rates
D)LIBOR rates

Question

Quizplus · Accepted Answer

Internal interest rates are used by corporate management to reflect the opportunity cost of money to the parent corporation when controlling an affiliate's cash reserves.

In an Attempt to Control an Affiliate's Cash Reserves,corporate Management