In the Canadian Economy, the Command System

question 38

Multiple Choice

In the Canadian economy, the command system

• A)is not used at all.
• B)is used occasionally inside firms and government departments.
• C)is used only by private companies.
• D)is used extensively in place of markets.
• E)is used extensively inside firms and government departments.

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Definitions:

Internal Control

Processes and procedures implemented by a business to safeguard its assets, ensure accurate and reliable financial reporting, promote efficiency, and ensure compliance with laws and regulations.

Assets Safeguarded

Measures or controls implemented to protect a company’s assets from theft, damage, or misuse.

Internal Control System

A system within an organization that directs, monitors, and measures its resources and processes to achieve objectives, such as financial reliability, operational efficiency, and compliance with laws and regulations.

Control Environment

The set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. It sets the tone for the importance of internal control and influences the control consciousness of its people.