A System of Internal Control

question 38

Multiple Choice

A system of internal control

• A) can never fail.
• B) can be ineffective if employees collude.
• C) will have costs exceeding benefits.
• D) is based on the concept of absolute assurance.

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Definitions:

Fixed Assets

Assets of a long-term nature such as buildings, machinery, and equipment that are used in the operations of a business.

Share Exchange

A transaction where shareholders agree to trade their shares for shares of another company, often used in acquisition deals.

Shareholder Group

A collection of individuals or institutions that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.

Voting Shares

Shares of stock that give the holder the right to vote on matters of corporate policy and the election of the board of directors.