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CTP · Question #319

CTP Question #319: Real Exam Question with Answer & Explanation

The correct answer is C. Develop a contingency funding plan. See the full explanation below for the reasoning.

Question

  • (Topic 4) XYZ Company has incurred a financially devastating event because of a hurricane at its offshore manufacturing plant. Due to the impact on liquidity, the company may not be able to survive. What should the Treasurer have done in order to assess the risk associated with this type of event?

Options

  • APurchase sufficient insurance
  • BNegotiate back-up lines of credit
  • CDevelop a contingency funding plan
  • DEvaluate financial derivatives contract

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