Which of the Following Statements Is True About an Organization

question 42

Multiple Choice

Which of the following statements is true about an organization with a simple form and a lean staff?

• A) It allows an organization to adjust rapidly to a fast-changing environment.
• B) It restricts innovation.
• C) It makes it difficult for the managers to monitor employee behavior.
• D) It indicates that the organization will fail.
• E) It delays decision-making.

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Definitions:

Transaction Recording

The process of documenting all business transactions in the accounting records of an organization, following accounting principles.

Collusion

A secret agreement between two or more parties for a deceitful, illegal, or fraudulent purpose to deceive others.

Prescribed Controls

Specific procedures and policies implemented by a company to safeguard its assets, ensure accurate financial reporting, and comply with laws and regulations.

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check.