Which of the following statements is false?

Select one:

a. Financial system arbitrage becomes more valuable if parity conditions hold.

b. Tax arbitrage implies profits are shifted from tax-paying units to units with tax losses.

c. Regulatory arbitrage can give MNCs a negotiating advantage.

d. None of these statements are false.

e. All of these statements are false.

High-tech firms, such as Uber and Google, can benefit the most from which of the following internal financial transfer mechanisms?

Select one:

a. fees and royalties

b. transfer pricing

c. leading and lagging

d. intercompany loans

e. reinvoicing centers

Units A and B buy from and sell to each other. Suppose that A has excess cash, whereas B is short of cash.

How can A funnel money to B?

Select one:

a. A can lag payments owed to B

b. B can lead payments owed to A

c. B can speed up the delivery of goods to A

d. A can delay the delivery of goods to B

e. None of these.

Which of the following is NOT a suitable characteristic of a proxy firm used to calculate a foreign project beta?

Select one:

a. The proxy firm is publicly listed.

b. The proxy firm is in the same industry as the project.

c. The proxy firm is located in the project's country.

d. The proxy firm has a similar risk exposure.

e. The proxy firm is located in the parent's country.