One of your friends is preparing to open a store that will sell outdoor gear. When you heard that the business would have three or four employees, you told your friend that she would need to pay careful attention to segregation of duties. She has asked you to explain what duties should be separated and why segregation of duties is important in a business. Write a note to your friend explaining these issues.
What will be an ideal response?
The likelihood of fraud or theft is reduced if employees must work together to accomplish it.
Clear segregation of duties is frequently used as a deterrent to corruption. When duties are segregated, the work of one employee can act as a check on the work of another employee. Whenever possible, the functions of authorization, recording, and custody of assets should be performed by separate individuals. However, no internal control system is foolproof. Internal controls can be circumvented by collusion among employees. That is, two or more employees working together can hide embezzlement by covering for each other.
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a. IRS b. Securities and Exchange Commission (SEC) c. SEC d. None of these choices.
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Decrease in Income Taxes Payable-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
A) Add to net income to arrive at net cash flows from operating activities. B) Subtract from net income to arrive at net cash flows from operating activities. C) Not used to adjust net income to calculate net cash flows from operating activities.
Channel control is lowest for manufacturers/service sponsors in _____
a. a fully integrated vertical system b. an independent vertical marketing system c. product/trademark franchising d. business format franchising
In what way does cultural intelligence help a leader be more effective?
a. It allows him to know when and how to end a meeting so everyone's needs are met. *b. It enhances team learning during cross-cultural interactions. c. It helps him know which holiday should be celebrated amongst his team. d. It allows him to recognize and leverage the unique skills of his employees.