DRH Corporation's Conversion Process Is Highly Automated; Computers and Other

question 22

Multiple Choice

DRH Corporation's conversion process is highly automated; computers and other forms of information technology are used to prepare raw materials for production and to move partially completed units through the factory. Which of the following statements is most true?

• A)DRH is not exposed to human error risk.
• B)DRH should use regular equipment inspections as a form of internal control.
• C)Both A and B are true.
• D)Neither A nor B is true.

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Venture Capitalists

Individuals who make large investments in new ventures in return for an equity stake in the business.

Management Role

Refers to the functions and responsibilities assigned to managers, including planning, organizing, leading, and controlling.

Entrepreneurship

The process of designing, launching, and running a new business, typically starting as a small business, such as a startup.