Scenario - GCD Industries

question 28

Multiple Choice

Scenario - GCD Industries
GCD Industries is a multinational organization that produces heavy equipment.It supplies many foreign nations with the necessary equipment to conduct reconstruction after natural disasters.One of the company's largest sales resulted from the devastation that occurred in Japan after the tsunami hit that nation.GCD is committed to helping nations recover from destruction brought about by natural phenomenon.
GCD prides itself on conducting its business in an honest and ethical manner.It does not wish to deal with countries that engage in corrupt business practices,but realizes that all nations have differing business practices.When the need arises for its products,this company strives to impart integrity into all of its business deals with foreign nations regardless of that nation's accepted practices.
-GCD Industries employs a set of internal controls within its operations to help ensure ethical behavior and to help prevent financial impropriety.Which one of the following is least likely to be used as an internal control by this company?

• A) Corrective actions are taken immediately whenever a department goes over its budget
• B) Adequate and accurate documentation and records are maintained
• C) Financial and accounting records are periodically audited
• D) The company has written policies and procedures for all members to follow
• E) All funds due the company and all checks for expenditures are handled by the same person

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Definitions:

Cultural Relations

The interactions and relationships between individuals or groups from different cultural backgrounds, encompassing understanding, communication, and often collaboration across cultural lines.

Cultural Clashes

Conflicts or mismatches arising from differing beliefs, values, practices, or expectations between cultures or within a multicultural environment.

Adaptive Corporate Culture

A corporate culture that is flexible, responsive, and able to change in response to external conditions or internal strategies.

Outwardly Focused

A perspective or approach that prioritizes external factors and dynamics, such as customer needs, market trends, and the broader community, over internal concerns.