Which One of the Following Below Reflects a Weak Internal

question 167

Multiple Choice

Which one of the following below reflects a weak internal control system?

• A) all employees are well supervised
• B) a single employee is responsible for comparing a receiving report to an invoice
• C) all employees must take their vacations
• D) a single employee is responsible for collecting and recording of cash

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Definitions:

Competitive Increasing-cost Industry

An industry in which the entry of new firms causes the input prices to increase, leading to upward-sloping supply curves for the firms.

Long-run Equilibrium

A state in economics where all factors of production are fully adjusted to the market condition and all economic agents have no incentive to change their behavior.

Consumer Demand

The desire and willingness of consumers to purchase a certain quantity of goods or services at various price points, at a particular time.

Competitive Increasing-cost Industry

An industry where supply costs increase as output expands, often because resources become scarcer or harder to obtain as production grows.