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CTP · Question #449

(Topic 5) A diversified industrial company operates multiple remote manufacturing facilities that manage local supplier relationships. The company draws on a single line of credit for all of its…

The correct answer is C. Decentralized check issuance drawn on a central disbursement bank. See the full explanation below for the reasoning.

Question

  • (Topic 5)

A diversified industrial company operates multiple remote manufacturing facilities that manage local supplier relationships. The company draws on a single line of credit for all of its working capital needs. Which of the following types of disbursement systems would BEST meet this company's needs?

Options

  • ACentralized check issuance drawn on a central disbursement bank
  • BDecentralized check issuance drawn on a local disbursement bank
  • CDecentralized check issuance drawn on a central disbursement bank
  • DCentralized check issuance drawn on a local disbursement bank

How the community answered

(55 responses)
  • A
    9% (5)
  • B
    7% (4)
  • C
    80% (44)
  • D
    4% (2)

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