Companies That Fail to Maintain an Adequate System of Internal

question 8

Multiple Choice

Companies that fail to maintain an adequate system of internal control:

• A) may be subject to charges of fraud.
• B) will be automatically dissolved.
• C) may be subject to fines and officer imprisonment.
• D) may be forced to sell their assets.

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Definitions:

Buying and Selling

Refers to the basic economic activities involving the exchange of goods or services for money between buyers and sellers.

Services

are intangible products such as healthcare, education, and financial advice that fulfill consumer needs and wants without resulting in the ownership of physical goods.

Tertiary Sector

The segment of the economy that provides services rather than goods, including industries such as retail, healthcare, and education.

Primary Sector

Refers to the part of the economy that is involved in the extraction and production of raw materials, such as mining, agriculture, and forestry.