Performing a Post-Audit Is Important Because

question 65

Multiple Choice

Performing a post-audit is important because

• A) managers will be more likely to submit reasonable data when they make investment proposals if they know their estimates will be compared to actual results.
• B) it provides a formal mechanism by which the company can determine whether existing projects should be terminated.
• C) it improves the development of future investment proposals because managers improve their estimation techniques by evaluating their past successes and failures.
• D) all of these.

Analyze the paradoxical effects of group dynamics on helping behavior.

Understand different motivations for helping behaviors including collectivism, altruism, and egoism.

Identify and describe social norms and principles that influence helping behavior, such as the reciprocity principle and the social responsibility norm.

Recognize the impact of societal organization (individualistic vs. collectivist societies) on the propensity to seek and offer help.

---

Definitions:

Basis

Basis refers to the difference between the spot price of a commodity and the futures price of the same commodity, which can indicate market expectations of future price movements.

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs.

Convergence

The movement of the price of a futures contract towards the spot price of the underlying asset as the delivery date approaches.

Futures Contracts

Legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.