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CTP · Question #258
(Topic 3) Company XYZ is in its first year of operations. The company culture is conservative, and it has $500 million to invest in short-term investments. The company has a growth rate of 25% and…
The correct answer is D. methods of monitoring compliance with policies, procedures and internal controls. See the full explanation below for the reasoning.
Question
- (Topic 3)
Company XYZ is in its first year of operations. The company culture is conservative, and it has $500 million to invest in short-term investments. The company has a growth rate of 25% and is looking to issue an IPO in the near future. The investment manager is in the process of creating a short-term investment policy which must be approved by the board of directors. An item that should be included in the policy is:
Options
- Amethods of monitoring compliance with the SEC.
- Bmaximum dollar amount of mortgage-backed securities.
- Cinternal controls for the enterprise resource planning system (ERP).
- Dmethods of monitoring compliance with policies, procedures and internal controls.
How the community answered
(32 responses)- A13% (4)
- B6% (2)
- C3% (1)
- D78% (25)
Community Discussion
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