AFP
CTP · Question #757
(Topic 8) U.S.-based manufacturing Company XYZ is looking to deliver finished goods to ABC Company in a developing nation. The credit department wants to ensure collectability and has asked the…
The correct answer is B. Disbursement. A company wants to implement more control over its cash management system. Which aspect of the system is the most susceptible to external fraud?
Manage Risk
Question
- (Topic 8)
U.S.-based manufacturing Company XYZ is looking to deliver finished goods to ABC Company in a developing nation. The credit department wants to ensure collectability and has asked the treasury department for guidance. The desired solution may impact days sales’ outstanding but will have the lowest credit risk to Company XYZ. What will treasury recommend?
Options
- ACollection
- BDisbursement
- CConcentration
- DReporting
How the community answered
(68 responses)- A4% (3)
- B81% (55)
- C3% (2)
- D12% (8)
Explanation
A company wants to implement more control over its cash management system. Which aspect of the system is the most susceptible to external fraud?
Topics
#trade finance#credit risk#international trade#letter of credit
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