The Person in Charge of Authorizing Credit to Customers Does

question 50

Multiple Choice

The person in charge of authorizing credit to customers does not properly understand what constitutes a credit risk. This is an example of:

• A)A material weakness.
• B)A design deficiency.
• C)A deficiency in operation.
• D)This is not an internal control deficiency.

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Definitions:

Competitive Pressures

The forces that compel companies to continually adapt, improve, and remain agile to maintain or enhance their position in the market.

Workplace Emotions

The feelings and emotions experienced by employees within a workplace setting and how they affect behaviors and performance.

Employee Loyalty

The extent to which employees feel a strong allegiance to their employer, often resulting in longer tenure and greater organizational commitment.

Cognitive Dissonance

a psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.