When Management Grants Greater Latitude to a Department in Initiating

question 19

Multiple Choice

When management grants greater latitude to a department in initiating transactions, _______.

• A)strong budget and accountability controls over a department's expenditures are usually established
• B)weak budget and accountability controls over a department's expenditures are usually established
• C)strong budget and accountability controls over a department's receipts are usually established
• D)weak budget and accountability controls over a department's receipts are usually established

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Definitions:

Unanimity

Complete agreement among all members or participants in a particular decision or vote.

Voting Structure

The method or system used to carry out the process of voting or making decisions within an organization or a country.

Economic Efficiency

The optimal distribution of resources in a society, minimizing waste and maximizing value.

Government Failure

A situation in which the structure of incentives is such that the political process, including democratic political decision-making, will encourage individuals to undertake actions that conflict with economic efficiency.