Centralized Cash Flow Management

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Centralized cash flow management

Provision of consolidated cash management decisions to all MNC units from one location, usually at the parent's headquarters.

The practice of a large corporation, especially a multinational, making all cash management decisions from headquarters. That is, individual units have little autonomy under centralized cash flow management. This has the advantage of being a uniform policy throughout the company, but management may be time consuming and possibly not as efficient.

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