Forces Which May Permit Fraud to Occur Do Not Include

question 74

Multiple Choice

Forces which may permit fraud to occur do not include

• A)a gambling addiction
• B)lack of segregation of duties
• C)centralized decision-making environment
• D)questionable integrity of employees

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Definitions:

IRR

Internal Rate of Return; the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new plant, worthwhile.

Capital Rationing

In capital budgeting, the process of allocating available capital among projects to maximize total NPV.

IRR

The Internal Rate of Return; a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.