Policies

question 29

Multiple Choice

Policies:

• A)prescribe how certain activities will be carried out.
• B)are broad guidelines used to assist lower level managers to handle recurring problems.
• C)assure that all budgets will be prepared using the same format.
• D)itemized projection of revenues and expenses for a future time period.
• E)are broad guidelines used to assist top level managers to handle recurring problems.

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Definitions:

Simple Delivery Contract

A contract that involves the transfer of goods from the seller to the buyer through direct delivery.

Identified to the Contract

Refers to goods that have been designated as the subject matter of a sales or service contract.

Insurable Interest

A stake in the preservation of a person or property that is sufficiently substantial to justify purchasing insurance.

Risk Exposure

The degree of vulnerability to potential financial loss in business operations or investments.