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FINANCIAL SCM

In general, the more net working capital a firm has ?

 The greater its risk
 The lower its level of long-term funds
 The less likely it is that creditors will lend to the firm
 The lower its risk

Which of the following statements about working capital is correct ?

 When current assets of a firm are less than its total assets, a firm is said to have positive net wo
 When current assets of a firm exceed its current liabilities, a firm is said to have positive net wo
 When current assets of a firm exceed its total assets, the firm is said to have negative net working
 When current assets of a firm exceed current liabilities, a firm is said to have negative net workin

Which of the following is a reason for extended payment terms ?

 The number of suppliers who can deliver the same product decreased
 Suppliers cannot deliver the same quality anymore since the credit crisis
 Restricted access to capital from banks
 Governments loosened up rules on payment terms

Which one of the following sentences describes a difference between Reverse Factoring and Dynamic D

 Reverse Factoring needs expensive KYC checks, while Dynamic Discounting doesnt
 Reverse Factoring is a supplier-driven financial instrument and Dynamic Discounting is a buyer-drive
 Reverse Factoring is a post-shipment instrument and Dynamic Discounting is an in-transit instrument
 Reverse Factoring is a pre-shipment instrument and Dynamic Discounting is a post-shipment instrument

The two core reasons for buyers to have SCF instruments are ?

 Improving working capital position and decreasing transaction costs
 Risk mitigation and improving working capital position
 Increasing supply chain transparency and improving relations with supplier
 Risk mitigation and improving relations with suppliers

Which one of the following is NOT a way to increase efficiency in the purchase-to-pay process ?

 Insurance of goods
 End-to-end responsibility for the full process
 Creating low value channels
 Monitoring and measurement

Which of the following sentences is correct ?

 In a stress test “what if” scenarios are tested
 With a contingency plan risk is transferred to a third party
 According to the article of Dittmann (2014) the risk that bears most concerns to supply chain manage
 When using e-invoicing transaction costs usually increase

Which of the following parties in the supply chain is a supporting member ?

 Logistic Service Provider
 Buyer
 Raw goods supplier
 Consumer

A firm purchased goods with a purchase price of 1,000 dollar and the following credit terms: a credi

 1,000 dollars
 1,100 dollars
 990 dollars
 900 dollars

Which of the following sentences about Supply Chain Finance instruments is NOT correct ?

 The most important instrument where LSPs can play a role is PO Financing
 In Dynamic Discounting there does not have to be a bank involved
 Reverse Factoring is based on the creditworthiness of the buyer
 A focal company can take a minority interest in a supplier to reduce supply risk

Taizhou Products uses 800 units of a product per year on a continuous basis. The product has carryin

 96 units
 98 units
 69 units
 68 units

According to the article of Dittmann the most popular method to mitigate or control risk is ?

 Add inventory
 Having strong suppliers
 Predictive modelling
 Compress time

Which one of the following is NOT a consequence of a delay of payment for suppliers ?

 Limitations to investments
 Reliance on alternative funding increases
 Limitations to customer segmentation process
 Financing daily operations can become problematic

When it comes to handling risk, Supply Chain Finance Instruments can have a big influence on certain

 Disruptions, delays and currency risk
 Disruptions, delays and accounts receivable risk
 Credit risk, disruptions and accounts receivable risk
 Disruptions, intellectual property risk and accounts receivable risk

Which of the following major variables should be considered when evaluating proposed changes in cred

 level of inventories
 accounts payable
 bad debt expenses
 level of liquid assets

The group of suppliers that buyers want to include in their Supply Chain Finance programs first are

 Suppliers of bottleneck items
 Suppliers of leverage items
 Suppliers of strategic items
 Suppliers of non-critical items

Collateral is one of the five C's of credit. What is meant by collateral ?

 The amount of assets the customer has available for use in securing credit.
 The customers debt relative to equity
 The customers record of meeting past obligations.
 The customers ability to pay the given credit, as judged in terms of financial statement analysis

The conversion of current assets ?

 from cash to receivables to inventory provides the cash used to repurchase stock
 from cash to receivables to inventory provides the cash used to pay non-current liabilities
 from inventory to receivables to marketable securities provides the cash used to buy plant and equip
 from inventory to receivables to cash provides the cash used to pay current liabilities

A firm purchased raw materials on account and paid for them after 30 days. The raw materials were us

 190
 130
 10
 70