The Reason to Prevent Those Who Authorise Transactions from Having

question 25

Multiple Choice

The reason to prevent those who authorise transactions from having control over the related asset is to protect the company primarily against:

• A) defalcation.
• B) error.
• C) non-compliance with accounting standards.
• D) unbiased information.

Realize the differences in income sources and classifications.

Know the disadvantages and challenges faced by corporations compared to sole proprietorships.

Recognize not-for-profit organizations and their roles.

Understand the taxation and profit distribution in different business forms.

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Definitions:

Individualistic People

Refers to those who prioritize their own goals and needs over those of the group.

Egalitarian People

Individuals who believe in the equal rights, responsibilities, and opportunities of all people, regardless of gender, race, or socioeconomic status.

Cooperative People

Individuals who are willing to work together towards common goals or interests.

Structural Holes

Concept in social networks that refers to the gaps between different clusters or groups of individuals, which can create opportunities for information brokerage or innovation.