In a Small Business, the Lack of Certain Separations of Duties

question 6

Multiple Choice

In a small business, the lack of certain separations of duties can best be overcome by

• A)bonding the employees.
• B)getting the owner actively involved.
• C)hiring only honest employees.
• D)holding one person responsible for a given set of transactions.

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Definitions:

Minimum Percentage

The lowest allowable or required fraction or rate of a quantity, often set as a standard or threshold.

Assets

Resources owned by a company, regarded as having value and available to meet debts, commitments, or legacies.

Invest

The action of allocating resources, usually financial, with the expectation of achieving a profit or material result.

ESOPs

Employee Stock Ownership Plans; these provide company stocks to employees as part of a retirement plan or incentive program.