Ray Has Worked in the Mailroom at MNG Corporation for Five

question 21

Multiple Choice

Ray has worked in the mailroom at MNG Corporation for five years, and is widely respected throughout the organization.Jon, the chief financial officer, started working at MNG six months ago after holding a similar position with one of MNG's competitors.Which of the following statements is most true?

• A)Both Ray and Jon can help establish a strong control environment, but only Jon can effectively identify risks and suggest control activities.
• B)Both Ray and Jon can effectively identify risks and suggest control activities, but only Ray can help establish a strong control environment.
• C)Neither Ray nor Jon should participate in the development of an internal control plan.
• D)Both Ray and Jon can influence most aspects of an internal control plan for MNG.

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Definitions:

Marketability

Marketability refers to the ease with which a product or service can be sold or marketed to customers.

Price-Earnings Ratio

A valuation metric that measures a company's current share price relative to its per-share earnings, used to gauge if a stock is under or over-valued.

Common Stock

The stock outstanding when a corporation has issued only one class of stock.

Dividend Yield

A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.