A Major Control Available in a Small Company,which Might Not

question 6

Multiple Choice

A major control available in a small company,which might not be feasible in a large company,is

• A)a wider segregation of duties.
• B)use of sequentially numbered documents.
• C)fewer transactions to process.
• D)the owner-manager's personal interest in and close relationship with personnel.

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Definitions:

Productive Capacity

The maximum output or production level that a facility, sector, or economy can sustain over a period.

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.

Financing Activities

Transactions related to raising capital or repaying investors, including issuing equity, obtaining loans, and paying dividends.

Spreadsheet

A digital tool used for organizing, analyzing, and storing data in tabular form, consisting of rows and columns to facilitate calculations and management of information.