Leading and lagging strategies have several advantages EXCEPT
A)no formal note of indebtedness is needed
B)governments are less like to interfere with payments on intercompany accounts
C)interest must be charged on all intercompany accounts
D)intercompany accounts up to six months are interest free

Question

Quizplus · Accepted Answer

The option C is incorrect as interest must be charged on all intercompany accounts, which means there is an additional cost associated with such strategies. On the other hand, options A, B, and D are correct as they all have advantages such as no formal note of indebtedness needed, government interference minimization, and interest-free intercompany accounts up to six months, respectively.

Leading and Lagging Strategies Have Several Advantages EXCEPT