When Sabrina, the Owner of a Grocery Chain Spends a Few

question 45

Multiple Choice

When Sabrina, the owner of a grocery chain spends a few days each year serving customers at a check-out stand, she is using an organizational control technique known as

• A) concurrent control.
• B) internal auditing.
• C) executive reality check.
• D) benchmarking.
• E) contingency planning.

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Definitions:

Nontaxable Return of Capital

A payment received from an investment that is not taxed because it is considered a portion of the original investment's cost being returned to the investor.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Earnings and Profits

A measure of a corporation’s ability to pay dividends to shareholders, not necessarily equal to net income.

Dependent Care Assistance Plans

Benefit plans offered by employers that allow employees to use pre-tax dollars to pay for dependent care expenses.