Which of the Following Statements Is False, Related to the Authorization

question 31

Multiple Choice

Which of the following statements is false, related to the authorization of transactions?

• A)Every transaction that occurs must be properly authorized in some manner.
• B)General authorization is the set of guidelines that allows transactions to be completed as long as they fall within established parameters.
• C)It is not possible, nor is it important, to try to ensure that an organization engage only in transactions that are authorized.
• D)Specific authorization that explicit approval is needed for that single transaction to be completed.

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Definitions:

Risk-free Rate

The estimated rate of profit for a no-risk investment, usually depicted by the earnings from government securities.

American Call

An option contract that gives the holder the right to buy a specific asset at a set price anytime before the expiration date.

Expiration Date

The predefined date after which an option or other financial contract becomes invalid and the right to exercise it ceases.

Conversion Premium

The additional amount above the par value that an investor pays to convert a convertible security (like a bond) into a predetermined number of shares of common stock.