Which of the Following Will Not Reduce the Likelihood of an Occurrence

question 53

Multiple Choice

Which of the following will not reduce the likelihood of an occurrence of fraud?

• A) encryption of data and programs
• B) use of forensic accountants
• C) adequate insurance coverage
• D) required vacations and rotation of duties

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, including both fixed and variable costs.

Total Profit

The total income a business earns after subtracting all expenses, taxes, and costs associated with producing and selling its goods or services.

Monopoly Power

The ability of a single seller or company to control the market for a particular good or service, leading to limited competition.

Perfect Competitor

A theoretical market structure where many firms sell identical products, there are no barriers to entry or exit, buyers have perfect information, and firms are price takers.