Having One Person Responsible for the Related Activities of Ordering

question 233

Multiple Choice

Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them

• A) increases the potential for errors and irregularities.
• B) decreases the potential for errors and irregularities.
• C) is an example of good internal control.
• D) is a good example of safeguarding the company's assets.

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Definitions:

Partnership Agreement

A contract between two or more individuals who agree to manage and operate a business together, sharing its profits and losses.

Individual or Group

Describes either a single person or a collection of persons considered together in context.

Uniform Partnership Act

A uniform act adopted by some U.S. states that govern the operations of partnerships within the state, including the creation, dissolution, and management of partnerships.

Defined as a "Person"

Legally recognizing an entity (can be human or non-human, such as corporations) as having rights and responsibilities.