Question

Treasury management in a large company covers several areas including funding management, liquidity management, currency management...

Treasury management in a large company covers several areas including funding management, liquidity management, currency management and corporate finance.

(i) explain the benefits of having a separate centralised treasury department.
(ii) Describe areas covered by treasury.

Homework Answers

Answer #1

(i) Benefits of separate centralised treasury department:

  • Manage risk more effectively.
  • Leverage scale to reduce cost and ratios.
  • Increase efficiency by reducing redundancies.
  • Optimize liquidity across the organization.
  • Enhance visibility into cash flows.
  • Improved working capital management through increased access to cash, resulting in reduced debt and increased return on investments of excess cash.

(ii) Areas covered by treasury.

  • Cash Management
  • Liquidity planning and control.
  • Management of interest, currency, and commodity risks.
  • Procurement of finance and financial investment.
  • Contacts with banks and rating agenecies.
  • Corporate finance.
  • Asset Liability management
  • Funds Transfer Pricing
  • Trading and Hedging
  • Portfolio Management
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Larry is a customer service representative for a large nationwide insurance company. His primary job is...
Larry is a customer service representative for a large nationwide insurance company. His primary job is to evaluate workers' compensation claims and provide members assistance in accessing services and financial resources. Larry covers two states, California and Louisiana, and usually has not more than a hundred or so active cases at any given time. All information is electronic, and communication is done through e-mail and phone calls. Larry works five days a week from 8:00 a.m. to 4:30 p.m., with...
Case Abstract: Company ABC, an AE, constructor and construction management firm, recently assigned Bob Ironside to...
Case Abstract: Company ABC, an AE, constructor and construction management firm, recently assigned Bob Ironside to turn a major coal fired generating station project around. Currently at 36 percent construction completion, the project is shifting from an emphasis on civil and structural work to bulk production. Cooperation of the owner, the multi-prime contractors, and strong labor unions is cach vital for performance improvement. The analysis of this project involves: 1) identification of significant external influences on the project organization, 2)...
Orange County Chrome Company manufactures three chrome-plated products—automobile bumpers, valve covers, and wheels. These products are...
Orange County Chrome Company manufactures three chrome-plated products—automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Orange County Chrome is $213,389. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 558 803 Valve covers 295 557 Wheels 340 597 1,193 1,957 Plating Department Automobile bumpers 171 1,166 Valve covers 175...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor confidence and damaged the reputation of companies large and small. The Sarbanes-Oxley Act (SOX) of 2002 was enacted in response to the high-profile Enron and World Com financial scandals to protect shareholders and the public from accounting errors and fraudulent practices by organizations. One primary component of the SOX is the definition of which records are to be stored and for how long. For...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has added extra functionality to the project. There was no impact on the cost or schedule. What should be done as a result of this change? Make sure marketing is aware of the change. Implement change control processes to track the change. Inform the customer. Understand what functionality was added. You are having difficulty getting a project underway. You have not been able to get...
Overview Your assignment is to complete a wireless network design for a small company. You will...
Overview Your assignment is to complete a wireless network design for a small company. You will place a number of network elements on the diagram and label them appropriately. A network diagram is important to communicate the design features of a network between network administrators, system administrators and cyber-security analysts. It helps to create a shared mental model between these different technologists, yet each will have their own perspective on what is important to have documented on the diagram. Please...
The Boeing Company, headquartered in Chicago, Illinois, is one of the two major producers of aircraft...
The Boeing Company, headquartered in Chicago, Illinois, is one of the two major producers of aircraft in the global market. The other major producer is European Airbus. Boeing produces three models in Everett, Washington: 747s, 767s, and 777s. The planes are all produced in the same building. At any one time, there may be as many as six planes in various stages of production. Obviously the building has to be fairly large to accommodate such a huge undertaking. In fact,...
You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process.
You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process. This process has not been audited for three years and, as such, is due in the normal audit cycle. There have been no significant changes since the previous audit, that is, there were no system changes, no reorganization of personnel, and no substantive procedural changes. However, during the last assurance engagement, the internal audit function identified several observations, some of which were...
CASE STUDY – Jacobson Carpet Company In January 2002, Ms. Mary Lewis was preparing to meet...
CASE STUDY – Jacobson Carpet Company In January 2002, Ms. Mary Lewis was preparing to meet with Mr. Carpenter, President of Jacobson Carpet Company. Ms. Lewis assumed that the meeting was related to the recent Board of directors of the company. As a direct assistant to the President, she knew from experience that this type of meeting often resulted in a project to be studied. Her expectation was confirmed as soon as Mr. Carpenter began to inform her of the...
Gourmet Jams Inc. Course Project: Supply Chain Management Marketing and Business Planning Background Information To highlight...
Gourmet Jams Inc. Course Project: Supply Chain Management Marketing and Business Planning Background Information To highlight the importance of the complexity of supply chain management, marketing and business planning and in order to address the regulatory environment to ensure compliance in exporting and importing goods across the border, careful consideration must be given to what type of goods are being exported, which regulatory agencies must be consulted and what is needed to ensure safe and efficient border clearance. The implication...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT