The Employee in Charge of Authorizing Credit to the Company's

question 25

Multiple Choice

The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk.This lack of knowledge would constitute:

• A)a deficiency in operation of internal controls.
• B)a deficiency in design of internal controls.
• C)a deficiency of management.
• D)not constitute a deficiency.

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Definitions:

Metal-rich Fluids

Liquids emanating from the Earth's crust, usually heated by magma, that are high in dissolved metals, often found in volcanic and hydrothermal areas.

Magma

A molten rock material beneath the earth's surface, which can solidify to form igneous rocks.

Deep Canyon

A profound and narrow valley with steep sides, carved by a river, glacier, or geological processes over time.

Permeable Rocks

Rocks that allow water to pass through them due to their porous nature.