Which of the following statements about the cash management in multinational companies is correct?

Question

A. Most multinational companies prefer to operate in countries that enact quotas on imported goods, because such quotas normally limit the amount of money the firms can lose in those countries.
B. Multinational companies do not use lock box systems, because most countries do not permit such banking arrangements.
C. Multinational companies always prefer holding more cash in their foreign operations than in their domestic operations.
D. Multinational companies often try to slow down collections and speed up disbursements where possible.
E. Most multinational companies face restrictions imposed by foreign governments when transferring funds from their foreign operations to their home countries.

Answer 1

Answer: E