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Explain the Risks Associated with the Creation of Unnecessary Roles

question 58

Essay

Explain the risks associated with the creation of unnecessary roles and why it can happen.


Definitions:

Cash Outflow

Money or value leaving a business, typically through expenses, purchases, or other financial activities.

Selling Equipment

The process of disposing of company-owned machinery or equipment, usually to generate cash or reduce assets.

Book Value

Cost of equipment less accumulated depreciation.

Loss

The result when a company's expenses exceed its revenues during a specific period, indicating a decrease in net assets.

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