Internal Control Does Not

question 126

Multiple Choice

Internal control does not:

• A)help safeguard the assets a business uses in its operations.
• B)guarantee a company will not go bankrupt.
• C)prevent and detect error and fraud.
• D)promote operational efficiency.

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Definitions:

Short Run

A period in economics during which some resource inputs in a production process cannot be changed.

Profit-Maximizing

The process of adjusting production and pricing strategies to achieve the highest possible profit from business operations.

Marginal Revenue

The additional income produced from selling one more unit of a good or service.

Economic Profit

The difference between the total revenue generated by a business and its total costs, including both explicit and implicit costs.