What is CENTRALIZED CASH FLOW MANAGEMENT?

The accumulation by a central authority of the power to make cash flow decisions for all levels of a multifaceted company or conglomerate. The intent is to achieve greater control of intracompany cash balances. The expected ability to control subsidiary surpluses is expected to lead to reducing the need to cover cash shortages with short-term loans.

More On This Topic



Link to This Definition
Did you find this definition of CENTRALIZED CASH FLOW MANAGEMENT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary