Which of the Following Statements About Internal and External Control

question 204

Multiple Choice

Which of the following statements about internal and external control is/are accurate?

• A) Effective control typically involves some combination of internal and external control.
• B) Organizations are increasingly relying on external control because of the emphasis on participation, empowerment, and involvement in the new workplace.
• C) An internal control strategy requires a high degree of trust.
• D) a and c
• E) a, b, and c

Understand the relationship between dividend payout ratios and additions to retained earnings.

Determine the required increase in fixed assets due to projected sales increases.

Calculate the external financing needed (EFN) based on sales projections and financing conditions.

Understand the impact of sales capacity on full-capacity sales levels.

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Definitions:

Natural Disasters

Unpredictable and severe events caused by natural forces such as earthquakes, floods, hurricanes, and wildfires that can result in significant damage and loss of life.

Dictator Game

A game used in experimental economics to study decision-making, where one player (the "dictator") determines how to split an endowment between themselves and another player.

Ultimatum Game

A game in economic experiments where two players decide how to divide a sum of money, with one proposing the split and the other accepting or rejecting it.

Time Inconsistency Problems

A situation in which a person's preferences change over time, such that what they plan to do in the future is inconsistent with their future desires, leading to potential issues in decision-making or policy settings.