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CTP · Question #781

(Topic 8) Multi-divisional or multi-subsidiary companies have opportunities to optimize their working capital position and overall liquidity by doing which of the following?

The correct answer is A. Consolidating the cash resources of all divisions and subsidiaries in order to pay down. See the full explanation below for the reasoning.

Question

  • (Topic 8)

Multi-divisional or multi-subsidiary companies have opportunities to optimize their working capital position and overall liquidity by doing which of the following?

Options

  • AConsolidating the cash resources of all divisions and subsidiaries in order to pay down
  • BAllocating corporate debt to each division or subsidiary according to its cash needs
  • CNegotiating with suppliers to extend their payment terms for key divisions or subsidiaries
  • DEstablishing strict credit standards that are uniform for all divisions or subsidiaries

How the community answered

(38 responses)
  • A
    71% (27)
  • B
    5% (2)
  • C
    16% (6)
  • D
    8% (3)

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