Consider the Following Short Case as You Respond to the Question

question 61

Multiple Choice

Consider the following short case as you respond to the question: Abruzzi's Italian Kitchen is a small family restaurant with an administrative staff of four people.Giuseppi Abruzzi is the chief executive officer; his wife Maria is the chief financial officer.Their son Antonio is responsible for all transactions dealing with kitchen supplies, including the raw materials for menu items; their son Carlo is responsible for all transactions dealing with dining room supplies, such as eating utensils.The restaurant's administrative practices have developed over the ten years of its existence with minimal reliance on information technology and formal procedures and a stronger emphasis on interpersonal relationships with a few reliable vendors.Once a month, Antonio places orders for kitchen supplies with one of four vendors based on price; the supplies are usually received within ten calendar days.On receipt of the supplies, Antonio pays the vendor with a company check.Carlo follows a similar process for dining room supplies, but works with a set of three vendors, none of which sell kitchen supplies.Abruzzi's Italian Kitchen is exposed to:

• A)Systems risk and human error risk.
• B)Human error risk and liquidity risk.
• C)Liquidity risk and systems risk.
• D)Human error risk, systems risk and liquidity risk.

---

Definitions:

Landscape Architecture

The art and practice of designing outdoor environments, blending natural and built elements to create harmonious spaces.

Chiswick House

An example of early neo-Palladian architecture in west London, designed by Lord Burlington and William Kent.

Palladian Classicism

An architectural style based on the principles and designs of the Venetian architect Andrea Palladio, emphasizing symmetry, classical forms, and proportion.

Neoclassicism

An artistic and cultural movement rooted in the revival of interest in the classical art and literature of ancient Greece and Rome.