In a Small Business, the Lack of Certain Separations of Duties

question 6

Multiple Choice

In a small business, the lack of certain separations of duties can best be overcome by

• A)bonding the employees.
• B)getting the owner actively involved.
• C)hiring only honest employees.
• D)holding one person responsible for a given set of transactions.

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Definitions:

Offeror

The person or entity that presents a proposal or bid in a contract negotiation, awaiting acceptance or rejection by the offeree.

Objective Standard

A legal principle that evaluates the actions of individuals based on what a reasonable person would do under similar circumstances.

Contract

A legally enforceable agreement between two or more parties where each agrees to fulfill certain obligations in exchange for benefits or considerations.

Court

A governmental institution where legal disputes are resolved by judges or a jury, and laws are interpreted and applied.