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AFP Certified Treasury Professional CTP Question # 441 Topic 21 Discussion

AFP Certified Treasury Professional CTP Question # 441 Topic 21 Discussion

CTP Exam Topic 21 Question 441 Discussion:
Question #: 441
Topic #: 21

RAL Capital, a lean global financial service provider with revenues of $8 billion, has 10 regional offices located around the world. The RAL global trading groups are structured as profit centers with each center having its own profitability targets. The group’s clients consist of large multinational corporations and financial institutions that require the buying and selling of large amounts of currency. The Treasurer is considering reorganizing his department into a profit center. The group processes millions of transactions every year. What is a downside of this scenario?


A.

May become a viable candidate for downsizing or outsourcing.


B.

Need to decentralize treasury operations in order to make a profit center more viable.


C.

Substantial headcount is required to support a profit generation center.


D.

Pressure to produce significant profits may lead to deferred losses and inefficient operations.


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