Having One Person Responsible for the Related Activities of Ordering

question 13

Multiple Choice

Having one person responsible for the related activities of ordering merchandise receiving goods and paying for them

• A) increases the potential for errors and fraud.
• B) decreases the potential for errors and fraud.
• C) is an example of good internal control.
• D) is a good example of safeguarding the company's assets.

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Definitions:

Cross Border Fund

An investment fund that seeks to invest in assets located in countries other than where the fund is domiciled.

Benchmark

A standard or point of reference against which things may be compared or assessed, often used in investing to measure the performance of securities or portfolios.

Equity Index

A benchmark that measures the performance of a specific section of the stock market by tracking the price of selected stocks.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used as a measure of risk.