Which of the following statements is true about bilateral netting?
A)It refers to the process of financing long-term outlays for major projects such as plant expansion, entry into new markets, or research and development.
B)It refers to raising capital by borrowing the money and agreeing to repay the entire amount plus agreed-upon interest at a specific date in the future.
C)It refers to raising capital by selling shares of stock across many countries.
D)It refers to a set of procedures used to estimate the economic value of an owner's interest in a business.
E)It refers to a technique that companies use to reduce the costs of cross-border payments between two subsidiaries.

Question

Quizplus · Accepted Answer

Bilateral netting is a method used by corporations to minimize the number of transactions and costs between subsidiaries, especially in different countries, by offsetting the amounts owed to each other and paying only the net difference.

Which of the Following Statements Is True About Bilateral Netting