External Audits Are Useful for Preliminary Control Because They

question 43

Multiple Choice

External audits are useful for preliminary control because they

• A) can assess what a company has done for itself.
• B) review a company's past, present, and future.
• C) can evaluate how a company has served its customers of its goods or services.
• D) can prevent problems from occurring.
• E) are more satisfying as operators benefit by having a more enriched job.

---

Definitions:

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that employers can legally pay their workers.

Price

The amount of money expected, required, or given in payment for something. It serves as a signal between buyers and sellers in a market.

Labor

The human effort, both physical and mental, used in the production of goods and services.

Substitution Effect

The change in quantity demanded of a good or service as consumers switch to or from substitutes when the price changes.