Sometimes, When Each Individual Acts in His or Her Own

question 121

Short Answer

Sometimes, when each individual acts in his or her own self-interest, the group as a whole ultimately suffers negative consequences: Such a situation is termed a(n) ___________.

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Definitions:

Sales Journal

A book or digital record used in accounting to record all sales transactions of a company.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business, including expenses and asset purchases.

Purchases Journal

A record keeping document used to note all credit purchases of inventory and other items made by a company.

Establishment of Responsibility

An internal control principle focusing on assigning specific responsibilities to particular employees to reduce errors and fraud.