AFP CTP Certification Exam Questions with AI Explanations

QUESTION: 166

Two critical factors in determining an operational risk management strategy for a company are:

organizational culture and technology.
industry standards and competition.
technology and data security.
physical security and the number of manual processes.

Answer(s): A

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QUESTION: 167

The MOST effective way to reduce the internal risk of technology as it relates to critical treasury functions is to:

implement an integrated accounts payable module as part of an automated general ledger package.
secure complex spreadsheets with formula protection and multi-level password access.
back up complex spreadsheets from PCs onto a local area network server daily.
replace complex spreadsheets with certified treasury systems.

Answer(s): D

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QUESTION: 168

One of the KEY risks associated with a company’s use of financial institutions is the possibility that:

frequent account management turnover at an institution will disrupt the company’s operations.
an institution’s operations will put the company in violation of the Gramm-Leach-Bliley Act.
an institution will inadvertently share the company’s confidential data with its competitors.
the institution will fail, which will have a financial impact on the company.

Answer(s): D

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QUESTION: 169

Which of the following is NOT a method multinational companies (MNC) use to repatriate capital?

Internal factoring
Dividends
Transfer pricing
Management fees

Answer(s): A

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QUESTION: 170

A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be:

manipulated to locate profits in low-tax countries.
paid through a third-party intermediary.
negotiated with the host government.
significantly taxed by the host government.

Answer(s): C

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Free AFP CTP Real Questions (page: 34)

QUESTION: 166

QUESTION: 167

QUESTION: 168

QUESTION: 169

QUESTION: 170