In a Small Business,because It Is Often Cost-Prohibitive to Hire

question 196

Multiple Choice

In a small business,because it is often cost-prohibitive to hire extra employees,the lack of certain separations of duties can best be overcome by

• A) hiring only honest employees.
• B) bonding the employees.
• C) holding one person responsible for a given set of transactions.
• D) getting the owner actively involved.

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Definitions:

Common Stock

A type of equity ownership in corporations, typically carrying voting rights and eligibility to share in dividends.

Par Value

The face value of a bond or stock as stated by the issuing company, which often bears no relation to its market value.

Fair Value

An estimate of the price at which an asset or liability could be bought or sold in an orderly transaction between market participants at the measurement date.

Par Value

The face value of a bond or the stock value stated in the corporate charter, not necessarily related to its market value.