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CTP · Question #695
CTP Question #695: Real Exam Question with Answer & Explanation
The correct answer is B. Default on the debt. See the full explanation below for the reasoning.
Question
- (Topic 7) A manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments: P-card issuer: $25,000 Payroll: $125,000 Bond interest payment: $200,000 Utilities: $50,000 The cash manager does not have a way to confirm the receivable amounts deposited at the bank. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments would threaten the company's just-in-time production. What concern should the company have?
Options
- ASupplier risk
- BDefault on the debt
- CElectronic security risk
- DContingency plan failure
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