Carlyon Land Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

A. team problems
B. a potential merger
C. competence
D. a tax break
E. irregularities


E. irregularities

One reason control is needed is that it helps you to discover irregularities and errors. Cost overruns, manufacturing defects, employee turnover, bookkeeping errors, and customer dissatisfaction may be tolerable in the short run. But in the long run, they can bring about even the downfall of an organization.

Business

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Financial statements for Maraby Corporation appear below:Maraby CorporationBalance SheetDecember 31, Year 2 and Year 1(dollars in thousands) Year 2Year 1Current assets:        Cash and marketable securities$220 $190   Accounts receivable, net 190  160   Inventory 140  150   Prepaid expenses 70  80 Total current assets 620  580 Noncurrent assets:        Plant & equipment, net 1,180  1,150 Total assets$ 1,800 $ 1,730        Current liabilities:        Accounts payable$100 $120   Accrued liabilities 100  70   Notes payable, short term 160  160 Total current liabilities 360  350 Noncurrent liabilities:        Bonds payable 450  500 Total liabilities 810  850 Stockholders' equity:       

Common stock, $5 par 160  160   Additional paid-in capital 200  200   Retained earnings 630  520 Total stockholders' equity 990  880 Total liabilities & stockholders' equity$ 1,800 $ 1,730 Maraby CorporationIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)$1,960 Cost of goods sold 1,370 Gross margin 590 Selling and administrative expense 230 Net operating income 360 Interest expense 50 Net income before taxes 310 Income taxes (30%) 93 Net income$  217 Maraby Corporation's working capital (in thousands of dollars) at the end of Year 2 was closest to: A. $360 B. $990 C. $260 D. $620

Business

Which of the following statements regarding a pull system is TRUE?

A) Large lots are pulled from upstream stations. B) Work is pulled to the downstream stations before it is actually needed. C) Manufacturing cycle time is increased. D) Problems become more obvious. E) None of the above is true of a pull system.

Business

Group value theory suggests that fair group procedures are considered to be a sign of respect.

Answer the following statement true (T) or false (F)

Business

It has become standard practice to use the term ________ differentiation to refer to the number of different units at the same level and ________ differentiation to refer to the number of levels in the organization.

A. job; rank B. horizontal; status C. horizontal; vertical D. vertical; horizontal

Business