Peter Budd, the Purchasing Officer of Lake Hardware Wholesalers Pty

question 67

Multiple Choice

Peter Budd, the purchasing officer of Lake Hardware Wholesalers Pty Ltd (Lake) , has a relative who owns a retail hardware store. Peter Budd arranged for hardware to be delivered by manufacturers to the retail store on a COD basis, thereby enabling his relative to buy at Lake's wholesale prices. Budd was probably able to accomplish this because of Lake's poor internal control for:

• A) purchase requisitions.
• B) cash receipts.
• C) perpetual inventory records.
• D) purchase orders.

---

Definitions:

Federalist 10

An essay by James Madison arguing for the importance of a large, diverse republic in controlling factions and protecting minority rights.

Madison

James Madison, the fourth President of the United States, known as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution and the Bill of Rights.

Anti-Federalists

Individuals who opposed the ratification of the U.S. Constitution in 1787-1788, fearing it centralized too much power in the federal government and outside the states.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all human beings share, despite cultural or individual differences.