An Effective Control System Is Important Because Manager's Need to

question 16

Multiple Choice

An effective control system is important because manager's need to

• A) decrease theft
• B) enhance performance
• C) delegate duties and empower staff
• D) show better financial results

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Definitions:

American Call Option

An option contract that gives the holder the right, but not the obligation, to buy a security at a specified price before the option expires.

Expiration Date

The specified date on which an options or futures contract becomes null and void.

ESOs

Employee Stock Options refer to the rights given to employees, included in their remuneration package, enabling them to buy shares of the company stock at a predetermined price.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled or that a product will meet a specified level of quality.