An Important Issue When Developing a New Service or Changing

question 50

Multiple Choice

An important issue when developing a new service or changing an existing one is the question of how different the new service is compared to the current services offered by the firm. Which of the following is not a general factor to consider when determining this?

• A) Similarity to current services
• B) Similarity of expected customers to current customers
• C) Similarity to current processes
• D) Financial justification

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Definitions:

Internal Control

Procedures and practices implemented by a company to safeguard assets, ensure accurate financial reporting, and promote compliance with laws and regulations.

Cash Receipts

The collection of money, including coins, notes, and electronic transfers, received by a business during its normal operations.

Over-The-Counter

A decentralized market where securities not listed on formal exchanges are traded directly between parties.

Voucher System

An internal control mechanism in accounting, where documents (vouchers) are prepared for every transaction involving the payment of cash or transfer of funds.