The Internal Control in Small Business Is Highly Dependent on The

question 58

Multiple Choice

The internal control in small business is highly dependent on the:

• A)separation of functional responsibilities.
• B)complexity of the client's internal controls.
• C)owner-manager's competence, as well as his/her ethics and integrity.
• D)bonding of employees.

---

Definitions:

Market

A medium or place where buyers and sellers conduct transactions, either physically or virtually, involving goods, services, or securities.

Financial Leverage

The application of borrowed capital to escalate the possible earnings from an investment.

Tax Shield

The reduction in income taxes that a company benefits from through deductible expenses and depreciation.

Leverage

Leveraging debt to enhance the possible yield from an investment.