To Discourage Collusion, Companies Should

question 67

Multiple Choice

To discourage collusion, companies should:

• A) Send letters to vendors and contractors
• B) Require mandatory job transfers
• C) Regularly review employees who are responsible for large contracts or accounts
• D) All of the above

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, including issuing debt, obtaining loans, and dividend payments.

Operating Activities

Activities that relate to the primary operations of a company, like sales, services, and product creation.

Investing Activities

Financial transactions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Statement of Cash Flows

A financial document that summarizes the amount of cash and cash equivalents entering and leaving a company, essentially showing how the company raises and spends money.