Which of the Following Is a Risk to the Financial

question 54

Multiple Choice

Which of the following is a risk to the financial statement of a company when it places a purchase order with a supplier?

• A)the supplier delivers the goods with an invoice instead of a delivery note
• B)the goods are not available
• C)the supplier delivers the wrong goods or wrong quantity
• D)the purchasing officer orders the wrong goods.

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to enter or exit the market, and perfect knowledge of prices and technology.

Marginal Product

The additional output produced as a result of employing one more unit of a particular input while keeping other inputs constant.

Value of Marginal Product

The extra revenue a firm gains by employing an additional unit of input.

Labor Demand

Labor demand reflects the quantity of labor that employers are willing and able to hire at a given wage rate in the market.