Internal Control Systems Are

question 51

Multiple Choice

Internal control systems are:

• A) Developed by the Securities and Exchange Commission for public companies.
• B) Developed by the Small Business Administration for non-public companies.
• C) Required only if a company plans to engage in interstate commerce.
• D) Developed by the Internal Revenue Service for all U.S. companies.
• E) Required by Sarbanes-Oxley (SOX) to be documented and certified if the company's stock is traded on an exchange (a public company).

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Definitions:

Preferred Supplier

A business that has been given a status that prioritizes its goods or services over others due to its quality, reliability, or cost-effectiveness.

Strategic Alliance

An alliance between two or more firms aiming to achieve common goals, with each maintaining their separate entity status.

Globalization Strategy

A strategy that adopts standardized products and advertising for use worldwide.

Efficiencies

The ratio of the output produced to the input resources used in the production process, aiming to minimize resources while maximizing output.