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Define Control Within an Organization

question 36

Essay

Define control within an organization.List and describe characteristics of the three approaches to designing control systems that have been identified.What determines the effectiveness of a control system?


Definitions:

Hedging Risk

The process of making an investment or entering into a financial transaction in order to reduce the risk of adverse price movements in an asset.

Exchange-rate Risk

The risk of losing money due to unfavorable changes in exchange rates when investing in foreign-denominated securities.

Hedged

In investment, using strategies to reduce or eliminate the risk of adverse price movements in an asset.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.

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