The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties. When evaluating the risks of both parties, which of the following can be assumed?

• A.The systems used by both parties must be compatible.
• B.The disaster recovery sites of both parties must be in the same location.
• C.The review of internal resources takes greater importance.
• D.The infrastructure linking the parties' systems must be considered.

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Which of the following statements BEST applies when evaluating fees in an RFP for bank services?

• A.Flexible credit terms are the most important consideration.
• B.Ability of financial institution to customize services is critical.
• C.A proforma account analysis statement captures all pricing and compensation detail.
• D.Accurate evaluation and comparison of the proforma account analysis statements are critical.

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A daily short-term forecast and variance analysis for LMN, Inc. is updated with relevant trends and actual data every Monday. Upon review, the Treasurer assessed that sales were higher than forecasted, inventory was up and yields being earned on excess cash were lower. The MOST important reason for this cash forecast process is:

• A.financial control.
• B.liquidity management.
• C.managing costs.
• D.capital budgeting.

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Financial ratios may provide an inaccurate forecast of a company's performance because they are:

• A.based on snapshots of the company's activity.
• B.sensitive to seasonal cash flows.
• C.economic rather than accounting values.
• D.difficult to incorporate into statistical forecasting.

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DGB Inc.'s CEO and founder retired shortly after the company went public two years ago. DGB Inc. has recently struggled, and the founder has agreed to return as an independent director. What violation, if any, has occurred?

• A.Section 404 of the Sarbanes-Oxley Act has been violated.
• B.ERISA disclosure requirements have not been met.
• C.The cooling-off period has not been met.
• D.No violation has occurred.

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