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CTP · Question #910

(Topic 9) A UK based manufacturer has a subsidiary in Belgium and a manufacturing plant in Italy. The subsidiary wants to sell its products in Sweden. How would the UK parent best structure the…

The correct answer is A. Internal factoring. See the full explanation below for the reasoning.

Question

  • (Topic 9)

A UK based manufacturer has a subsidiary in Belgium and a manufacturing plant in Italy. The subsidiary wants to sell its products in Sweden. How would the UK parent best structure the movement of funds within the organization to optimize management of working capital while ensuring recourse?

Options

  • AInternal factoring
  • BRe-invoicing
  • CExport financing
  • DMultilateral netting

How the community answered

(32 responses)
  • A
    69% (22)
  • B
    9% (3)
  • C
    3% (1)
  • D
    19% (6)

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