Multiple choice questions (choose one answer for each question)

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

A) A focal company can take a minority interest in a supplier to reduce supply risk

B) Reverse Factoring is based on the creditworthiness of the buyer

C) In Dynamic Discounting there does not have to be a bank involved

D) The most important instrument where LSPs can play a role is PO Financing

17) Which one of the following sentences describes a difference between Reverse Factoring and Dynamic Discounting?

A) Reverse Factoring is a pre-shipment instrument and Dynamic Discounting is a post-shipment instrument

B) Reverse Factoring is a post-shipment instrument and Dynamic Discounting is an in-transit instrument

C) Reverse Factoring is a supplier-driven financial instrument and Dynamic Discounting is a buyer-driven financial instrument

D) Reverse Factoring needs expensive KYC checks, while Dynamic Discounting doesnt

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

A) Suppliers of strategic items

B) Suppliers of bottleneck items

C) Suppliers of leverage items

D) Suppliers of non-critical items