What Is the Most Prevalent Opportunity Within Most Companies to Commit

question 51

Multiple Choice

What is the most prevalent opportunity within most companies to commit fraud?

• A) lack of any internal controls
• B) failure to enforce the internal controls
• C) loopholes in the design of internal controls
• D) management's failure to believe employees would commit fraud

---

Definitions:

Industry

A group of companies or businesses that produce the same products or services and are involved in the same type of economic activity.

Perfect Competitor's Demand Curve

A horizontal line reflecting a perfectly elastic demand situation where the firm can sell any quantity at the prevailing market price.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely or extremely to changes in price.

Highly Inelastic

Describes demand that is hardly responsive to changes in price, typically for necessities where consumption does not decrease significantly with a price increase.