When the Management of a Business Is Conducted by Individuals

question 35

Multiple Choice

When the management of a business is conducted by individuals other than the owners, the business is more likely to be a:

• A)corporation.
• B)Sole proprietorship.
• C)Partnership.
• D)General partner.

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Definitions:

Creditor's Name

The name of the individual or entity that is owed money by a debtor for provided goods, services, or loans.

Voucher Number

A unique identifier assigned to a voucher, which is a document authorizing a payment or receipt in the accounting system.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Separation Of Duties

is a preventive security measure in organizations to reduce the risk of fraud or error, requiring more than one person to complete key tasks.