One of Your Friends Is Preparing to Open a Store

question 119

Essay

One of your friends is preparing to open a store that will sell outdoor gear.When you heard that the business would have three or four employees,you told your friend that she would need to pay careful attention to separation of duties.She has asked you to explain what duties should be separated and why separation of duties is important in a business.Write a note to your friend explaining these issues.

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Definitions:

Interest Rate

The fee, shown as a percent of the main amount, that a lender imposes on a borrower for the use of assets.

Price Ceiling

A legal maximum price that can be charged for a particular good or service, typically set by government.

Equilibrium Price

The price at which quantity demand is equal to quantity supplied.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.