Which One of the Following Is an Inherent Risk That

question 57

Multiple Choice

Which one of the following is an inherent risk that is common to all clients in certain industries?

• A) brand loyalty in the cosmetics industry
• B) sales between a parent company and subsidiary company
• C) dependence on a small number of customers
• D) accounts receivable collection in the consumer loan industry

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Definitions:

Non-Profit Organization

An organization dedicated to furthering a particular social cause or advocating for a shared point of interest, without aiming for profit.

Managing Partner

The partner in a law firm who makes decisions relating to the firm’s policies and procedures and who generally oversees the business operations of the firm.

Business Operations

Activities involved in the day-to-day functions of a business related to producing and delivering its products or services.

Policies

Directives or rules that guide actions and decision-making within organizations to achieve rational outcomes.