Which of the Following Is Not Necessarily One of the Benefits

question 4

Multiple Choice

Which of the following is not necessarily one of the benefits of effective internal control?

• A) Safeguarding of assets
• B) A sound liquidity position
• C) More accurate accounting data
• D) A more efficient accounting system

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Definitions:

Exchange Rate Risk

Exchange rate risk, or currency risk, refers to the potential for loss due to fluctuations in the foreign exchange rate between two currencies.

Political Risk

The risk of losing money due to changes in a country's political landscape or government policies that negatively affect investments.

International Diversification

The strategy of spreading investment risk by purchasing assets in various countries, aiming to reduce overall investment risk.

International Financial Management

The discipline concerned with managing financial resources in a global market, including investment, financing strategies, and risk management across borders.