A Company Is Said to Lack Control When There Is

question 80

Multiple Choice

A company is said to lack control when there is an) _____, that is the firm's expectations are not established.

• A) inadequacy of ethics in the culture
• B) "shoot the messenger" management
• C) lax top management
• D) absence of policies
• E) lack of periodic reviews

---

Definitions:

S-corp

is a type of corporation that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.

C-corp

A type of corporation subject to corporate income tax, distinct from its owners, who are taxed separately on their personal income from the corporation.

Double Taxation

A situation where income or profits are taxed at two levels, typically once at the corporate level and again at the individual shareholder level.

Dividends

Payments made by a corporation to its shareholders from the company's profits or reserves.