Question: In the treasury / financing cycle, why is approval from the board of directors necessary for loans and investments? To ensure proper segregation of duties
In the treasuryfinancing cycle, why is approval from the board of directors necessary for loans and investments?
To ensure proper segregation of duties in producing financial statements.
To prevent any investments that would expand the company's operational focus beyond
its core competencies.
To maintain the operational efficiency of the treasury and financing departments.
To confirm management's adherence to company policies and compliance with debt
covenants.
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