QUESTION

40

Choose

the correct statement below:

a.   

The

holding company will add a value (advantage) of R20 000 by pooling cash from

its subsidiary accounts.

b.   

The

interest earned by pooling cash from the three subsidiaries' accounts equals R42

000.

c.    

The pooling of cash to the central master account will

save R16 000 that could have been lost if pooling had not been done.

d.   

The net pooling by the central treasury of Exotic

Spice Ltd will earn the company a collective interest of R36 000.