A Process, Effected by an Entity's Board of Directors, Management

question 125

Multiple Choice

A process, effected by an entity's board of directors, management and other personnel, applied in strategy settings and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives is:

• A) enterprise risk management
• B) internal control
• C) organizational governance
• D) risk assessment

Demonstrate knowledge on editing for clarity by eliminating redundancy, using active voice, and opting for simpler expressions.

Understand the impact of visual design on the readability and perception of documents.

Learn to recognize and avoid wordy phrases and to use concise language.

Understand the importance of parallelism in writing for improving coherence and readability.

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Definitions:

Consolidated Inventory

The aggregate amount of inventory held across all subsidiaries of a parent company, combined in the financial statements to present a total inventory figure for the entire corporate group.

Acquisition Business Combination

An event or transaction where one entity gains control over one or more companies.

Fair Values

The expected value from selling an asset or what it would cost to delegate a liability in an orderly exchange scenario with market participants on the designated assessment date.

Common Stock

A type of security that represents ownership in a corporation, granting shareholders voting rights and a share in the company's profits via dividends.