The Concept of ____ Recognizes That Managers Must Use Their

question 40

Multiple Choice

The concept of ____ recognizes that managers must use their judgment to ensure that the cost of control does not exceed the system's benefits or the risks involved.

• A) reasonable assurance
• B) reasonable acts
• C) common acts
• D) common assurance

---

Definitions:

Corporate Profits

Corporate profits denote the earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Proprietors' Profits

The earnings retained by the owners after all expenses have been deducted from the gross income of an unincorporated business.

National Income

The total value of all income earned by the residents of a country in a given period, including wages, profits, and investment returns.

Entrepreneur

An individual who organizes, operates, and assumes the risk for a business venture, often introducing innovations and facilitating economic development.