The Reason to Prevent Those Who Authorise Transactions from Having

question 25

Multiple Choice

The reason to prevent those who authorise transactions from having control over the related asset is to protect the company primarily against:

• A) defalcation.
• B) error.
• C) non-compliance with accounting standards.
• D) unbiased information.

Understand the effects of functional specialization on quality, change management, and inter-functional coordination.

Know about horizontal and vertical specialization and their implications for departmentalization and division of labor.

Comprehend the principles behind various organizational designs including simple design, adhocracy, and bureaucracy.

Recognize the influence of technology on organizational structure and design, including operations technology and information technology.

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Definitions:

Creativity

The ability to produce original and valuable ideas, involving imagination and the capacity to solve problems in novel ways.

Myelination

The process of forming a myelin sheath around a nerve to allow electrical impulses to transmit quickly and efficiently along the nerve cells.

Impulsiveness

A trait leading individuals to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of consequences.

Perseveration

The tendency to persevere in, or stick to, one thought or action for a long time.