The Principle of Selecting and Developing Controls That Might Help

question 80

Multiple Choice

The principle of selecting and developing controls that might help mitigate risks to an acceptable level belongs to which of the COSO's Internal Control Model's component?

• A)Control environment.
• B)Risk assessment.
• C)Control activities.
• D)Information and communication.

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Definitions:

Pure Monopsonist

A market condition in which there is only one buyer for a product or service.

Marginal Revenue Product

Marginal Revenue Product measures the additional revenue generated by employing one more unit of a factor, such as labor or capital, crucial in determining how resources are allocated.

Marginal Expenditure

The added financial outlay involved in purchasing one more unit of a product or service.

Monopsony Wage Rate

The wage rate determined in a market where there is only one buyer of labor, giving this buyer significant power over the wage rate.