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NEW QUESTION: 1
A manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments:
P-card issuer: $25,000
Payroll: $125,000
Bond interest payment: $200,000
Vendor payments: $260,000
Utilities: $50,000
The cash manager does not have a way to confirm the receivable amounts deposited at the bank. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments would threaten the company's just-in-time production. What concern should the company have?
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Answer: C
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B. Use of the organization's risk appetite in investment decisions
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Answer: C
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