Consider the Following Short Case as You Respond to the Question

question 50

Multiple Choice

Consider the following short case as you respond to the question: SPC Corporation sells computer security software.They maintain their AIS using general ledger software; data files are backed up twice a day.Sales staff can access the customer database, inventory files and general ledger, as well as sales-related documents such as invoices and sales orders.Newly hired sales staff members at SPC receive the company procedures manual which explains the process used to complete the steps in the sales/collection process.To minimize costs, SPC designates up to five sales staff members each month who can do credit checks for all new customers in addition to processing sales.SPC bills its clients monthly and uses the balance forward method of accounting for receivables; all cash receipts from clients are processed using a lockbox procedure.The lockbox firm's fee is 3% of all collections.SPC's accounting department estimates bad debts at the end of each fiscal year; they are normally about 1% of total sales.SPC's internal control in the sales/collection process would be strengthened by making changes in:

• A)Its method of accounting for receivables.
• B)Its organizational structure and division of responsibilities.
• C)Both its method of accounting for receivables and its organizational structure and division of responsibilities.
• D)Neither its method of accounting for receivables nor its organizational structure and division of responsibilities.

Distinguish between the operations and impacts of transactional, transformational, charismatic, and participative leadership styles.

Understand the concept of moral leadership and its significance in an organizational context.

Identify actions that can enhance one's ability to lead ethically.

Understand the principles of International Human Resource Management (IHRM) and its impact on organizational success.

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Definitions:

Sixth Grade

The level of education that typically follows fifth grade, often involving students aged 11 to 12 in the United States.

Zone of Proximal Development

A concept developed by Vygotsky, describing the difference between what a learner can do without help and what they can achieve with guidance and encouragement.

Vygotsky

A Soviet psychologist known for his theory on social development of children and the concept of the Zone of Proximal Development.

Deductive Inferences

The process of reasoning from one or more statements (premises) to reach a logically certain conclusion.