CTP Chapter 1 Study Questions with Verified Answers

CTP CHAPTER 1 - STUDY QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) A GRADE


In terms of corporate governance, who assumes the role
of trustee or fiduciary for stakeholders including
shareholders, donors to not-for-profits, customers,
employees, and even society in general?
A)Board of directors.
B)Internal auditor.
C)Risk manager.
D)Management of the company. - correct answer-
D)Management of the company


The board of directors typically delegates what authority
to Treasury?
A)The reporting of foreign tax due.
B)Audit bank account statements.
C)Approval of business policies.
D)Maintain bank accounts. - correct answer-
D)Maintain bank accounts

, Which is a typical result of a multinational operating a
centralized treasury instead of a decentralized one?
A)Better economies of scale.
B)Higher tax penalties.
C)Higher operating costs.
D)Greater subsidiary autonomy. - correct answer-
A)Better economies of scale


Which is a valid reason for deploying a shared services
center (SCC)?
A)Allows higher quality and lower cost but less timeliness
or flexibility.
B)Allows regional processes to be autonomous and
specialized. C)The resulting SCC becomes an internal
service provider similar to an external vendor.
D)The resulting SCC reduces costs by creating multiple
regional operations. - correct answer- C)The
resulting SCC becomes an internal services provider
similar to an external vendor