Which of the Following Items Associated with the Acquisition

question 8

Multiple Choice

Which of the following items associated with the acquisition / payment process is likely to expose an organization to one or more forms of operational risk?

• A)Purchase order prepared by hand
• B)Schedule of accounts payable prepared with Excel
• C)Both A and B
• D)Neither A nor B

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Definitions:

Central Planning

An economic system where the government makes all decisions about the production and distribution of goods and services, controlling resources and directing activities.

Prices

The amount of money required to purchase a good or service, often determined by supply and demand dynamics.

Consumer Sovereignty

The determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy; consumers’ direction of production through their dollar votes.

Legislation

Laws or legal statutes passed by a legislative body, governing body, or the process of enacting laws.