A Weak System of Internal ______ Provides the ______ to Commit

question 143

Multiple Choice

A weak system of internal ______ provides the ______ to commit fraud.

• A) controls; opportunity
• B) audits; rationalization
• C) financial statements; opportunity
• D) loan covenants; incentive

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Definitions:

Riskiness

A measure of the uncertainty associated with the returns on an investment, indicating the potential for loss.

Dividend Growth Rate

Dividend Growth Rate is the annualized percentage rate of growth of a company's dividend payments, indicating the steady increase in dividends paid out to shareholders over time.

External Equity

Financing obtained from sources outside a company, such as public stock offerings or venture capital investments.

Flotation Cost

Flotation cost is the total charges associated with creating and issuing new shares of stock, encompassing underwriting, legal, and registration fees.