Rule-Based Controls Are Least Appropriate in Organizations with Which One

question 42

Multiple Choice

Rule-based controls are least appropriate in organizations with which one of the following characteristics?

• A) Environments are stable and predictable.
• B) Employees are highly skilled and independent.
• C) There is consistency in product and service.
• D) The risk of malfeasance is extremely high.

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Definitions:

Business Strategy

A plan of action designed by an organization to achieve a specific goal or to secure a competitive position in the market.

Trade Association

An organization founded and funded by businesses that operate in a specific industry, aimed at promoting their collective interests.

Corporate Social Responsibility

Initiatives taken by corporations to assess and take responsibility for the company's effects on environmental and social wellbeing.

Organization's Reputation

The collective perceptions and opinions held by the public, customers, and stakeholders about an organization's qualities, actions, and standards.