Internal Controls Are Often Segregated into

question 25

Multiple Choice

Internal controls are often segregated into

• A)detective controls and preventive controls.
• B)general controls and application controls.
• C)process controls and general controls.
• D)system controls and application controls.

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Definitions:

Pure Monopolist

A single seller in a market that produces a unique product or service without close substitutes, controlling the entire supply.

Fair Return

A profit level that allows a business to maintain its operations and justify the risk of investment, often considered in regulatory contexts.

Regulatory Commission

A government body responsible for setting and enforcing rules and regulations in a specific sector to protect public interest.

Economies of Scale

The advantages in cost that companies receive owing to their operational magnitude, with the expense per produced unit generally diminishing as the scale of operations broadens.