Which of the following are advantages of netting?
V.Avoiding transaction costs
VI.Shifting profits to different subsidiaries
VII.Avoiding taxes for the parent firm
VIII.Increasing flexibility in the parent firm
A) I only
B) II only
C) I and IV
D) II, III, and IV

Question

Quizplus · Accepted Answer

Netting can help reduce transaction costs by consolidating multiple transactions into one. It can also increase flexibility for the parent firm. However, it is not a means for shifting profits or avoiding taxes.

Which of the Following Are Advantages of Netting