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