A Small Organization That Does Not Have Enough Personnel to Adequately

question 114

True/False

A small organization that does not have enough personnel to adequately segregate duties must rely on alternative controls, commonly called resource controls.

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Definitions:

Shareholders

Shareholders are individuals or entities that own shares in a company, giving them certain rights, such as voting on corporate matters.

Self-Dealing Managers

Managers or directors of a company who engage in transactions that benefit themselves at the expense or detriment of the company or its shareholders.

Business Judgment Rule

A legal doctrine that protects corporate executives' decisions when made in good faith and believed to be in the best interest of the company.

Corporate Opportunity

A legal doctrine that restricts leaders of a corporation from taking personal advantage of an opportunity that should belong to the corporation.