AFP CTP Exam - Topic 5 Question 3 Discussion

Actual exam question for AFP's CTP exam

Question #: 3
Topic #: 5

An international organization has decided to move its treasury operations to the head office in Paris, France. The company's goal is to establish the treasury as the primary provider of banking services and all company financing. What would the new proposal be an example of?

AA hybrid treasury structure

BA decentralized and a re-engineered organization

CAn in-house bank and a centralized organization

DAn outsourced shared service center

Show Suggested Answer

Suggested Answer: C

by Weldon at Mar 06, 2025, 08:28 PM

Limited Time Offer

25%

Off

Get Premium CTP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Roslyn

6 months ago

Wait, are they really moving everything to Paris? That seems risky!

upvoted 0 times

...

Hillary

6 months ago

Totally agree, centralized is the way to go for efficiency!

upvoted 0 times

...

Rolande

6 months ago

Really? I thought they were leaning towards decentralization.

upvoted 0 times

...

Isabelle

7 months ago

Definitely an in-house bank move.

upvoted 0 times

...

Tora

7 months ago

Sounds like they're going for a centralized organization!

upvoted 0 times

...

Angella

7 months ago

I keep mixing up the terms, but I feel like this isn't an outsourced service center since they're moving operations in-house.

upvoted 0 times

...

Sheldon

7 months ago

I remember a practice question about centralized organizations, and this feels similar. It sounds like they want to streamline everything under one roof.

upvoted 0 times

...

Silvana

7 months ago

I'm not entirely sure, but it seems like a hybrid structure could fit too, given the mix of centralized and decentralized elements.

upvoted 0 times

...

Shad

8 months ago

I think this might be an example of an in-house bank since they're centralizing operations in Paris.

upvoted 0 times

...

Tuyet

8 months ago

This is a tricky one. The company is changing its treasury structure, but I'm not sure if that qualifies as a "hybrid" or "decentralized" approach. I'll have to re-read the question and options closely to decide.

upvoted 0 times

...

Chery

8 months ago

Okay, I've got it! The company is centralizing its treasury function at the head office in Paris. That sounds like it would be an example of an in-house bank and a centralized organization. I'm confident that's the right answer.

upvoted 0 times

...

Marlon

8 months ago

Hmm, I'm a bit confused. The question mentions moving treasury operations to a head office, but I'm not sure how that relates to the answer choices. I'll need to think this through carefully.

upvoted 0 times

...

Dorathy

8 months ago

This seems like a straightforward question about organizational structure. I think the key is to identify the type of change the company is making to its treasury operations.

upvoted 0 times

...

Raylene

1 year ago

Centralizing the treasury operations in Paris? Sounds like a recipe for a Parisian revolution if you ask me. Just kidding, but seriously, this is clearly an in-house bank and a centralized organization.

upvoted 0 times

...

Malcom

1 year ago

Well, at least they're not outsourcing their treasury to a shared service center. That would be like letting the fox guard the henhouse, if you ask me.

upvoted 0 times

Josphine

1 year ago

I agree, keeping the treasury in-house is definitely a safer option.

upvoted 0 times

...

Reuben

1 year ago

C) An in-house bank and a centralized organization

upvoted 0 times

...

Malissa

1 year ago

A) A hybrid treasury structure

upvoted 0 times

...

Jennie

1 year ago

I see your point, Willard. It could be a combination of both a hybrid structure and a centralized organization.

upvoted 0 times

...

Willard

1 year ago

But wouldn't it also be considered an in-house bank and a centralized organization?

upvoted 0 times

...

Louis

1 year ago

I agree with Buck, it makes sense to centralize the treasury operations in Paris.

upvoted 0 times

...

Raul

1 year ago

This is definitely an in-house bank and a centralized organization. Centralizing all the company's financing under the Paris headquarters is a classic example of a centralized treasury setup.

upvoted 0 times

Gerri

1 year ago

Having a centralized treasury can also lead to better control and efficiency in managing the company's finances.

upvoted 0 times

...

Reed

1 year ago

It would also help streamline the banking services and financing for the entire company.

upvoted 0 times

...

Alecia

1 year ago

I agree, centralizing the treasury operations in Paris would definitely make it an in-house bank and a centralized organization.

upvoted 0 times

...

Mary

1 year ago

I'm not sure, but I think this could also be considered a hybrid treasury structure. Centralizing the treasury operations while still maintaining some decentralized aspects seems like a hybrid approach.

upvoted 0 times

...

Macy

1 year ago

This new proposal sounds like an in-house bank and a centralized organization to me. The goal of establishing the treasury as the primary provider of banking services and financing makes it a centralized model.

upvoted 0 times