The External Control Process Differs from the Internal Control in That

question 3

Multiple Choice

The external control process differs from the internal control in that the external control:

• A)Encourages harmony, responsiveness, and sensibility
• B)Focuses on self, function, one's own group, and one's own organization
• C)Proves to be uncomfortable when the environment seems out of control or changeable
• D)Has a dominating attitude bordering on aggressiveness toward the environment

Understanding the various ways shareholders can receive profits from corporations and the role of directors in dividend declarations.

Recognizing the differences between nonprofit and for-profit corporations, closely held corporations, and public corporations, including their formation and characteristics.

Identifying the tax classifications of corporations, specifically S corporations, and their qualifications.

Comprehending the responsibilities and rights of corporate directors and officers.

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Definitions:

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.

Opportunity Cost

The loss of potential gain from other alternatives when a particular alternative is chosen.

Variable Manufacturing Costs

Costs in manufacturing that vary with the level of production output, including direct labor, materials, and utilities.

Direct Labor

The labor costs directly associated with the manufacture of products, typically wages for workers who physically produce the goods.