Rule-Based Controls Are Least Appropriate in Organizations with Which One

question 42

Multiple Choice

Rule-based controls are least appropriate in organizations with which one of the following characteristics?

• A) Environments are stable and predictable.
• B) Employees are highly skilled and independent.
• C) There is consistency in product and service.
• D) The risk of malfeasance is extremely high.

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Definitions:

Economies Of Scale

A situation where the cost per unit of output decreases as the scale of production increases.

Income Inequality

The unequal distribution of income among individuals or households in an economy, leading to various social and economic issues.

Market Power

The ability of a company or group of companies to control prices or exclude competition within a market or industry.

Resource Markets

Markets where resources (like labor, capital, and raw materials) that are used to produce goods and services are bought and sold.