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

question 122

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

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Definitions:

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.

Price Ceiling

A legal limit on how high the price of a product can be charged in the market.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the actual amount they do pay.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.