To Determine Whether the Accounting and Control Procedures Are Adequate

question 17

Multiple Choice

To determine whether the accounting and control procedures are adequate once the new venture is beyond the startup phase and is growing consistently, ____.

• A)an annual audit is needed
• B)financial statements are not required
• C)a business agent is not required
• D)a labor union is essential
• E)the entrepreneur should file with the SEC

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Definitions:

Loss Of Control

The reduction or elimination of an individual's or entity's power to make decisions in a company or over its assets.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Bulk Purchasing

The process of buying goods in large quantities at a discounted rate to save money and increase profit margins.

Franchisors

Companies or individuals that grant the license to third parties to conduct business under their brand and operational model.