There Are Three Simple Procedures That Small Business Owners Should

question 23

Multiple Choice

There are three simple procedures that small business owners should do on a timely basis to prevent fraud when they can't afford sufficient employees to guarantee effective segregation of duties. Which of the following is NOT one among them?

• A) Pay everything by check so that there is a record.
• B) Always open the bank statement and reconcile it themselves.
• C) Allow one key employee to operate the bank account personally.
• D) Sign every check themselves and not delegate the signing to anyone else.

---

Definitions:

Herbert Simon

An influential scholar in the realms of economics, psychology, and computer science, known for his work on decision-making and artificial intelligence.

Economic Person

A theoretical concept of a person who makes rational decisions by maximizing utility or profit based on limited resources.

Programmed Decision Making

A decision-making process that follows established procedures or rules, often used for routine and repetitive decisions.

Existing State

The current conditions or circumstances of a system, situation, or state of affairs.