Effective Separation of Duties in a Business Allows the Work

question 80

True/False

Effective separation of duties in a business allows the work of one employee to serve as a check on the work of other employees.

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Definitions:

Inelastic

Describes demand that does not significantly change with a change in price.

Natural Monopoly

A market structure where a single supplier efficiently provides all the goods or services due to high fixed or start-up costs, making it impractical for multiple firms to operate.

Long-run Average Costs

The average cost per unit of output when all factors of production - including capital - can be varied, typically showing economies of scale.

Economies of Scale

The economic gains experienced by companies due to their operational scope, with per-unit production costs usually falling as the operational size expands.