A Small Business Owner Can Best Offset the Lack of Separation

question 78

Multiple Choice

A small business owner can best offset the lack of separation of duties by

• A) Creating an internal audit department.
• B) Installing the latest computer equipment and software.
• C) Being actively involved in the accounting process.
• D) Relying on the external auditor to detect errors.

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Definitions:

Tacit Collusion

A form of collusion in which businesses subtly coordinate actions without explicit agreement, aiming to raise prices or stabilize market conditions.

Legal

Pertains to matters governed by law, statutes, or regulations and recognized or enforced by a judicial system.

Tit-For-Tat Strategy

A cooperative, reciprocative strategy in game theory where an entity responds to an opponent's action with similar action.

Pricing Strategy

The approach a company uses to determine the best price for its products or services to maximize profits and meet customer expectations.