The Objectives of a Company's System of Internal Control Include

question 141

Multiple Choice

The objectives of a company's system of internal control include which of the following?

• A)Providing innovative products.
• B)Retaining position as market leader.
• C)Adhering to laws and regulations.
• D)Ensuring the company's stock price provides a reasonable return to investors.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing profits.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company, reducing the amount of outstanding stock on the open market.

Paid-In Capital

Funds raised by a company through the issuance of common or preferred stock, representing the capital contributed by shareholders in exchange for shares.

No-Par Stock

Refers to shares issued without a nominal or face value, where the price is determined by the market or the company's board.