Which of the following is NOT an objective of international cash management by MNCs?
A) To increase the firm's liquidity.
B) To increase the firm's returns on investment.
C) To ensure that all subsidiaries have the same pattern of cash flows.
D) To reduce foreign exchange risk.

Question

Quizplus · Accepted Answer

The objective of international cash management by MNCs is to ensure that cash is managed efficiently across all subsidiaries, increase liquidity, increase returns on investment, and reduce foreign exchange risk. However, ensuring that all subsidiaries have the same pattern of cash flows is not an objective of international cash management. Each subsidiary may have its unique operating and cash flow requirements, which should be managed accordingly.

Which of the Following Is NOT an Objective of International