Which of the Following Represents a Control Risk for a Retail

question 32

Multiple Choice

Which of the following represents a control risk for a retail business?

• A)Bank reconciliations are not performed on a timely basis.
• B)Two employees are colluding to facilitate theft.
• C)There are many competitors in the region.
• D)A bank reconciliation is not performed correctly.

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Definitions:

Royalty Fee

A payment made by one party (the licensee) to another (the licensor) for the ongoing use of an asset, typically intellectual property.

Gross Sales

The total sales revenue of a business before any deductions are made for returns, allowances, or discounts.

Franchise Agreement

A legal contract in which a franchisor grants the franchisee the rights to operate a business under the franchisor's brand and system for a specified period.

Legal Relationship

The connection between entities or individuals established through the laws and regulations of a jurisdiction, defining rights, duties, and liabilities.