Tightening strategic focus can be accomplished by:

Question 1          Tightening strategic focus can be accomplished by:                                         

A. Agreeing on areas not to enter

B. Only making large bets

C. Completing all projects

D. Always being first to market

Question 2          In the CFO relationship with the board of directors, the risk management area includes the following task:               

A. Report on risk issues to the board of directors

B. Monitor projected cash balances

C. Oversee the activities of any supplier to which functions have been outsourced

D. Oversee the formulation of the annual budget

Question 3          In an acquisition strategy, the product supplementation strategy is used to acquire a business:                 

A. Located in a faster-growing niche

B. That does not compete in the same industry

C. That sells into a different geographic region

 D. That has a product that can supplement the company’s own product line with similar products

Question 4          In risk ranking:                                  

A. It helps to estimate the potential frequency and severity of the risk

B. Judgment can help with quantitative analysis

C. The use of real-world models can improve accuracy

 D. All answers are

Question 5          Internal controls are more likely to fail:                                 

A. When one person circumvents them

B. When responsibilities are clearly stated

C. In a profitable business

 D. Because they rely upon the judgment of the people operating them

Question 6          In risk management, estimating the severity of risks include:                                     

A. Risk planning

B. Monitoring and reporting

C. Financial statement disclosure

 D. All answers are

Question 7          The process integration principle states that:                                     

A. A large number of manual controls be used

 B. Controls be thoroughly intertwined with business processes

C. Controls are cluster of activities that are from business processes

D. Controls only be used for repetitive transactions

Question 8          Risk planning includes:                                  

A. Mitigating the risk though specific actions

B. Accepting the risk because of the low frequency/severity or potential payoff

C. Transferring the risk through insurance or financial derivatives

 D. All answers are

Question 9          In categorizing risk, profiles include different categories such as financial, supply chain, data security, strategic and operational.                                           

True

False

•             Question 10        In the CFO organizational structure, it is easier to share best practices information with subsidiaries when:                                  

A. There is no formal management link between the corporate parent and the subsidiary accounting departments

B. The subsidiaries are given the freedom to contact each other with this information

C. Corporate counsel is placed in charge of best practices

 D. There is a link between the business unit controllers and the corporate controller