Consider the Following Short Case as You Respond to the Next

question 38

Multiple Choice

Consider the following short case as you respond to the next question: Abruzzi's Italian Kitchen is a small family restaurant with an administrative staff of four people. Giuseppi Abruzzi is the chief executive officer; his wife Maria is the chief financial officer. Their son Antonio is responsible for all transactions dealing with kitchen supplies, including the raw materials for menu items; their son Carlo is responsible for all transactions dealing with dining room supplies, such as eating utensils. The restaurant's administrative practices have developed over the ten years of its existence with minimal reliance on information technology and formal procedures and a stronger emphasis on interpersonal relationships with a few reliable vendors. Once a month, Antonio places orders for kitchen supplies with one of four vendors based on price; the supplies are usually received within ten calendar days. On receipt of the supplies, Antonio pays the vendor with a company check. Carlo follows a similar process for dining room supplies, but works with a set of three vendors, none of which sell kitchen supplies.Internal control would be strengthened at Abruzzi's Italian Kitchen if:

• A)Kitchen supplies were ordered more than once a month.
• B)Non-family members were hired in key positions.
• C)Both A and B.
• D)Neither A nor B.

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Definitions:

Multibranding

A marketing strategy in which a company sells multiple brands in the same product category, targeting different market segments.

Brand Licensing

The process by which a company allows another organization to use its brand name, logo, or product characters in exchange for a fee or royalties.

Multiproduct Branding

A branding strategy where a single brand name is used for multiple related products, enhancing brand recognition and simplifying marketing efforts.

Oocyte

The female gamete, referred to as an egg or ovum.