Scenario - GCD Industries GCD Industries Is a Multinational Organization

question 61

Multiple Choice

Scenario - GCD Industries GCD Industries is a multinational organization that produces heavy equipment.  It supplies many foreign nations with the necessary equipment to conduct reconstruction after natural disasters.  One of the company's largest sales resulted from the devastation that occurred in Japan after the tsunami hit that nation.  GCD is committed to helping nations recover from destruction brought about by natural phenomenon. GCD prides itself on conducting its business in an honest and ethical manner.  It does not wish to deal with countries that engage in corrupt business practices, but realizes that all nations have differing business practices.  When the need arises for its products, this company strives to impart integrity into all of its business deals with foreign nations regardless of that nation's accepted practices. GCD Industries employs a set of internal controls within its operations to help ensure ethical behavior and to help prevent financial impropriety.  Which one of the following is least likely to be used as an internal control by this company?    

• A) Corrective actions are taken immediately whenever a department goes over its budget
• B)Adequate and accurate documentation and records are maintained
• C)Financial and accounting records are periodically audited
• D)The company has written policies and procedures for all members to follow
• E)All funds due the company and all checks for expenditures are handled by the same person

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Definitions:

Unconditional Positive Regard

An attitude of acceptance and support towards another, regardless of what the person says or does.

Genuineness

The quality of being authentic and sincere in one's interactions, oftentimes considered an important trait in therapeutic contexts.

Preexisting Stereotypes

Preconceived and oversimplified beliefs or ideas held about certain groups or individuals before learning more about them.

Automatic Influence

The unconscious impact of external factors on an individual's thoughts, feelings, or actions.