Answer:
E. Shifting from a multi-country to a global strategy.
Explanation:
The process of diversification allows the firms to reap the competitive advantages as the benefits of the skills and transfers, low costs economies of scope. Cross boundaries used by the powerful brands and collaboration in the creation of stronger and competitive capabilities. A diversified firms thus look for a global strategy to spread its risks and establish its business and develop its main strategic alternatives. The diversified firms hence have ample market opportunities and thereby brain the scope of the business.The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?
Answer:
55,000 shares
Explanation:
Given that
60000 shares were originally given
5000 were subsequently reacquired
Thus. Net number of shares issued
= number of shares originally issued - number subsequently reacquired
= 60000 - 5000
= 55,000
Number of outstanding shares therefore is 55,000.
NOTE that, outstanding shares refer to the number of shares that has been issued, purchase or authorized by investors, that is, the number of shares currently held by all is shareholders.
Suppose the government increases spending on public education by $700 million and individual spending on private education drops by $700 million. this is an example of
a. incomplete crowding out.
b. complete crowding out.
c. zero crowding out.
d. a and c
e. none of the above
Answer:
b. complete crowding out
Explanation:
Expansionary Fiscal Policy is increase in government's net public spending. This leads to increase in Aggregate Demand & hence increase in Income.
However, this government investment effect might be nullified by simultaneous decrease in private investment. It is referred to 'Crowding Out' effect. It implies : increased government spending increases income, which increase demand for loanable funds. Such loan funds demand if not accompanied by increase in money supply, leads to increase in interest rates. This finally leads to reduction in private investment.
Complete crowding out effect is when entire government investment spending amount is offset by equal fall in private investment spending. There is no final net increase in total investment, aggregate demand & income. Given case : 'The government increases spending on public education by $700 million and individual spending on private education drops by $700 million' is an example of 'Complete Crowding Out'
The fi corporation's dividends per share are expected to grow indefinitely by 5% per year. ( lo 13-3 ) 1. if this year's year-end dividend is $8 and the market capitalization rate is 10% per year, what must the current stock price be according to the ddm? page 438 2. if the expected earnings per share are $12, what is the implied value of the roe on future investment opportunities? 3. how much is the market paying per share for growth opportunities (that is, for an roe on future investments that exceeds the market capitalization rate)?
Answer:
1. $160
2. 15%
3. $40
Explanation:
the attached picture shows the full explanation
Stuart Inc. is planning to lease computer equipment for its production and testing departments. Currently, the production and testing departments lease it separately and pay $231,000 and $399,000, respectively, as lease charges. If both the departments lease the equipment jointly, the contract will cost only $570,000. If the cost-allocation method ranks the individual users of a cost object in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users, Stuart, Inc. must be using the ________ cost-allocation method.
Answer:
INCREMENTAL cost allocation method
Explanation:
Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.
Answer:
Incremental Cost-allocation method
Explanation:
Incremental cost-allocation method has to do with establishing priorities among users and allocating common costs to the primary party up to the amount of that user's stand-alone costs which is shown in the case explained here.
True or false: the return on human capital accounts for a much larger share of u.s. national income than the return on physical capital.
a. True
b. False in market economies, investment funds are directed by . as a result, market economies tend to be characterized by a innovation and discovery process than centrally planned economies.
Answer:
True
Explanation:
Human capital are returns or value gain on set of skills, experience and knowledge of the people. When the skills and knowledge of the people are harnessed, it affects economic growth positively and also help to developing an economy.
Physical capital are goods which facilitate the process of production. Examples of physical capital are equipments, land, cash etc.
Although both are important in an economy, human capital accounts for a much larger share of the u.s national income than the return on physical capital because of the large investment in education, research and development and technology.
America account for most of the latest technologies in the world due to its investment in research and also home to larger numbers of investors. All these points to human capital development.
7 In January 2020, Coronado Industries, a newly formed company, issued 10200 shares of its $8 par common stock for $13 per share. On July 1, 2020, Coronado Industries reacquired 1020 shares of its outstanding stock for $10 per share. 1.The acquisition of these treasury shares increased total stockholders' equity. 2. decreased total stockholders' equity. 3. did not change total stockholders' equity. 4. decreased the number of issued shares.
Answer:
2. decreased total stockholders' equity.
Explanation:
January 7, 2020, stocks are issued:
Dr Cash 132,600
Cr Common stock 81,600
Cr Additional paid in capital 51,000
July 1, 2020, treasury stocks are purchased:
Dr Treasury stocks 10,200
Cr Cash 10,200
Treasury stocks is a contra equity account which reduces the value of total stockholders' equity. When they are purchased, treasury stocks account must be recorded at the full repurchase price of the stocks.
Many business application software vendors are pushing the use of _____ for small and medium-sized enterprise (SME) to help customers acquire, use, and benefit from new technology while avoiding much of the associated complexity and high start-up costs.
a) hosted software model
b) an ERP System
c) open-source code
d) a CRM system
Answer:
a) hosted software model
Explanation:
Many business application software vendors are pushing the use of a hosted software model for small and medium-sized enterprise (SME) to help customers acquire, use, and benefit from new technology while avoiding much of the associated complexity and high start-up costs.
Hosted software is a software that is installed, hosted and accessed completely from a remote server or location.
The advantages of hosted software model are;
- Perpetuity
- Reliable Backup.
- Anywhere access.
- Scalability of computing resources.
All other things unchanged, a general decrease in the amount of government borrowing will typically: a increase interest rates. b reduce the supply of loanable funds. c raise the level of demand for loanable funds. d have no effect on the demand for loanable funds. e shift the loanable funds demand curve to the left.
Answer:
The answer is option B) a general decrease in the amount of government borrowing will typically reduce the supply of loanable funds.
Explanation:
When government decides to borrow, one of the ways they achieve this is by issuing debt in the form of bonds to raise money. They offer attractive interest rates to the public to increase participation and the monies paid in as investment will constitute loanable funds.
However, if there is a general decrease in the amount of government borrowing, there might reduce the incentives and when this happens, people are less enthusiastic about buying bonds.
This scenario will reduce the supply of loanable funds that would have been collated from the citizens investment.
What makes buying a foreclosed property risky? Give at least two
Answer:
Don’t Buy That Fixer-Upper (Unless You Know These 4 Things)
House Hunting
Sure-fire ways to spot a fixer-upper that’ll fix you up financially.
Plaster and lath wall torn apart
Before Buying, Real Estate Pros Insist on Doing These 4 Things
House Hunting
What you really need to know about buying — from the people who house hunt for a living.
Grigory Pekarsky in his kitchen
Is It OK to Use the Bathroom When You’re Touring a House?
House Hunting
Explanation:
Got offline hope this helps :)
Initially, a perfectly competitive industry that has 1,000 firms is in long-run equilibrium. Then 100 firms in the industry adopt a new technology that reduces the average cost of producing the good. In the short run, the price ________, firms with the new technology make ________ economic profit, and firms with the old technology ________.
Answer:
B. falls; positive economic; incur economic losses
Explanation: A perfectly Competitive industry is a collection of firms who are producing similar products,these firms are known as price takers as the pressure from the market forces and other impacts that causes an change in price will affect them easily as they will have to take the price even when it is not favourable to their business, this is done in order to remain competitive and relevant in the market.
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%.
What is Abdul's implicit cost?
Answer:
The correct answer is $1,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Receives a loan = $100,000
Withdraws = $50,000
Interest rate = 2%
So, we can calculate the implicit cost by using following formula:
Implicit cost = Withdrawal amount × Tax rate
By putting the value, we get
Implicit cost = $50,000 × 2%
= $1,000
Net cash provided by operating activities was $12,000. Net cash provided by investing activities was $2,000. Net cash used in financing activities was $7,000. The cash balance at the beginning of the year was $4,000. The cash balance at the end of the year is:
Answer:
$11,000
Explanation:
The cash generated from operating activities is $12,000 which is a cash inflow, likewise net cash generated by investing activities was $2,000 which is also a cash inflow and cash used in financing is cash outflow so:
Cash generated during the year = Cash inflow - Cash Outflow
Cash generated during the year = ($12,000+2,000) - 7,000 = $7,000
Now
Cash balance at the end of the year = Opening cash balance + Cash generated during the year
So by putting values, we have:
Cash balance at the end of the year = $4,000 + $7,000 = $11,000
On July 8, Ace, a refrigerator wholesaler, purchased 50 refrigerators. This comprised Ace's entire inventory and was financed under an agreement with Rome Bank that gave Rome a security interest in all refrigerators on Ace's premises, all future acquired refrigerators, and the proceeds of sales. On July 12, Rome filed a financing statement that adequately identified the collateral. On August 15, Ace sold one refrigerator to Cray for personal use and four refrigerators to Zone Co. for its business.Which of the following statements is correct?A. The refrigerators sold to Zone will be subject to Rome's security interest.B. The refrigerator sold to Cray will not be subject to Rome's security interest.C. The security interest does not include the proceeds from the sale of the refrigerators to Zone.D. The security interest may not cover after-acquired property even if the parties agree.
Answer:
OPTION (B) is correct.
Explanation:
Because, already the interest has been improved, then also Cray gets to keep the refrigerator. The consumer in the ordinary course of business buy a good or a product which is free from a security interest even if the customer knows about the agreement which is made during the lending, that is known as security agreement.
Because in security agreement is a agreement which decides that who is lending, have to pay security interest.
Which of the following descriptions best describes "leadership"?
(A) A firm, unyielding position on what should be done to solve a problem
(B) A set of beliefs based upon principle
(C) A positive, "let's do something about it" attitude toward problems
(D) A posture of resistance to those in authority
Answer:
C) A positive, "let's do something about it" attitude toward problems
Explanation:
Leadership is best described as a positive, 'let's do something about it' attitude towards problems, as it involves taking initiative, envisioning solutions, and empowering others to achieve a common goal.
Explanation:The best description for 'leadership' among the provided options is mostly likely (C) A positive, 'let's do something about it' attitude toward problems. Leadership often revolves around taking initiative, envisioning solutions, and motivating others toward achieving a common goal. It's about empowering others, not challenging or oppressing them. Therefore, a 'let's do something about it' attitude reflects the proactive and enabling nature of true leadership.
Learn more about Leadership here:https://brainly.com/question/32010814
#SPJ6
____ refers to systems for providing effective and efficient communication with the customer from the entire organization. Operational customer relationship management (CRM) Collaborative customer relationship management (CRM) Analytical customer relationship management (CRM) Sales force automation Business intelligence
Answer:
Collaborative Customer relationships Management
Explanation:
Collaborative Customer Relationship Management (CRM) is a form of customer relationship management in which all departments present in an organization shares all the or any form of interaction they have with a customer. It provides effective and efficient interaction with customer from the whole organization. It facilitates communication and interaction throughout all the departments present in the organization. In collaborative CRM, all stakeholders are in control of the customer process.
Answer:
Customer Relationship Management
Explanation:
Crane Companybudgeted manufacturing costs for 60000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manufacturing costs $12 per ton of steel Craneproduced 40000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?
Answer:
$530,000
Explanation:
Given that
Fixed manufacturing cost = 50000
Variable manufacturing cost = 12 per ton steel
Total number of steal produced = 40000
Recall that
Total manufacturing cost = Total fixed manufacturing cost + total variable manufacturing cost
Total variable manufacturing cost = variable cost per ton × output
= 40000 × 12
= 480,000
Therefore,
Total manufacturing cost = 50000 + 480000
= $ 530,000
Total manufacturing cost = $530,000
Preferred stockholders:a. must receive more dividends per share than the common stockholders.b. must receive dividends every year.c. have the right to receive dividends only in the years the board of directors declares dividends.d. have the right to receive dividends only if there are enough dividends to pay the common stockholders too.
Answer:
The answer is C.
Explanation:
Preferred shares is synonymous to debt. It has the characteristics of debt and equity. They are given preferential treatment. If a company liquidates, they will be settled before the common shares.
Out of all the options, option C. is correct. They have the right to receive dividends only in the years the board of directors declares dividends. This applies to both preferred shares and common shares. If the board of directors does not declare dividends, nobody receives.
Option A is wrong because they only receive dividend according to the number of shares they are holding in the company.
Option B is wrong because they receive shares only in the the board declares dividends.
Option D is also wrong.
Researchers have measured the outcome of psychotherapy by doing all of the following except ______.
1. assessing the reduction in spending on medical services when psychotherapy is provided
2. using PET and fMRI scans to view changes in the brain subsequent to psychotherapy
3. surveying clients about their experiences in psychotherapy
4. comparing hemoglobin levels between those with and without mental disorders
Answer:
4. comparing hemoglobin levels between those with and without mental disorders
Explanation:
- Assessing the reduction in spending on medical services when psychotherapy is provided.
- Using PET and fMRI scans to view changes in the brain subsequent to psychotherapy.
- Surveying clients about their experiences in psychotherapy.
Researchers have measured the outcome of psychotherapy by doing all of the above except comparing hemoglobin levels between those with and without mental disorders.
Every new customer at Five Elements Spa is asked to register his or her personal details, which includes the customer's age, purpose of visit, and contact information. With this information, the company regularly keeps in touch with its customers, reminding them of their next appointments, new spa offers, and any other promotions. The database is used to predict a customer's next visit to the spa based on his or her previous visits. It also helps the company design service packages to suit the customer's individual needs. In this scenario, Five Elements Spa is using:_________.
A. customer relationship management.
B. corporate governance.
C. service design prototyping.
D. supply chain management.
E. social audit.
Answer:
A. customer relationship management.
Explanation:
Based on the scenario being described within the question it can be said that in this scenario, Five Elements Spa is using customer relationship management. This refers to an approach of managing a companies various interactions between the company and it's current and future potential customers , with the main goal of retaining the current customers and bringing in newer potential customers. Which is what the company is doing by regularly keeping in touch with their customers.
A company incurred costs to fulfill a contract that has a four-year life. The costs are a direct result of the contract and would not have been incurred had the contract not existed. How should the costs to fulfill the contract be accounted for:
Answer:
Recorded as an asset and amortized over four years.
Explanation:
When a company incurs a long term cost on a project or in the purchase of an asset.it usually amortised it and recognises it over a number of years.
This is done to reduce the expense in just one year. The expense is spread out so it does not affect profits.
In this instance the cost is recorded as an asset and amortized over four years.
Final answer:
Expenses directly related to a multi-year contract should be recognized over the life of the contract to match the incurred costs with the generated revenues, according to GAAP's matching principle. Fixed costs are spread out over time and sunk costs are not considered for future decisions. Costs related to contracts are treated as assets and expensed over the term of the contract using the six-step method of cost accounting.
Explanation:
The costs incurred to fulfill a contract that has a multi-year life should be accounted for based on the matching principle of Generally Accepted Accounting Principles (GAAP). The matching principle dictates that expenses should be recognized in the same period as the revenues they help to generate. Therefore, if a company incurs costs directly related to a contract, these costs should be spread out over the life of the contract, aligning with the revenue recognition.
Fixed Costs, such as the lease payments for equipment or a warehouse, are recognized over time, regardless of the company's level of production. In contrast, sunk costs are not taken into account for future business decisions once they have been incurred, as they cannot be recovered. When we discuss recoverable costs, it relates to assets that can be resold, where the initial cost may be recouped in the future.
When a company acquires assets or incurs other direct costs due to a contract, these are reflected on the balance sheet as assets and expensed over the contract's term according to the six-step method prescribed by cost accountants. According to this method, to accurately measure the full cost of a service or product, one must first define the cost object, which in this case, is the contract.
On January 1, 2019, Coopers Industries bought a parcel of land for use in its operations by paying the seller $100,000 in cash and signing a 5-year, 12 percent note payable in the amount of $400,000. In connection with the purchase of the land, Coopers incurred legal fees of $19,000, a real estate agent sales commission of $25,000, surveying fees of $1,000, and an appraisal fee of $5,000. The acquisition cost of the land is:___________
A. $131,000
B. $150,000
C. $531,000
D. $550,000
Answer:
D. $550,000
Explanation:
The computation of the cost of the land is shown below:
= Cash paid + note payable signed + legal fees incurred + real estate agent sales commission + surveying fees + an appraisal fee
= $100,000 + $400,000 + $19,000 + $25,000 + $1,000 + $5,000
= $550,000
For computing the cost of the land we simply added all the items given in the question
The total acquisition cost of the land for Coopers Industries is $550,000, which includes the initial cash payment, the note payable, and all associated legal fees, commission, surveying, and appraisal costs.
The acquisition cost of the land for Coopers Industries includes the cash paid to the seller, the value of the note payable, and all additional fees incurred in purchasing the land. The formula to calculate the acquisition cost is:
Cash paid to the sellerPlus: Value of note payablePlus: Legal feesPlus: Real estate agent's commissionPlus: Surveying feesPlus: Appraisal feeAdding these amounts gives us:
$100,000 (cash) + $400,000 (note payable) + $19,000 (legal fees) + $25,000 (commission) + $1,000 (surveying) + $5,000 (appraisal) = $550,000
Therefore, the correct answer is D. $550,000.
In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design school, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of _______________ in Porter's national competitive advantage model.
Answer:
Related and supporting industries
Explanation:
In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design school, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of Related and supporting industries in Porter's national competitive advantage model.
Related and supporting industries is one of Porter's national diamond determinants.
Which of the following statements are true? I) Holding other things constant, the duration of a bond decreases with time to maturity. II) Given time to maturity, the duration of a zero-coupon increases with yield to maturity. III). Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower. IV) Duration is a better measure of price sensitivity to interest-rate changes than is time to maturity.
Answer:
III). Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower.
Explanation:
Duration and convexity are two items associated with the management of the risk exposure concerned with fixed-income investments.
Duration is used to check the reaction of the bond in terms of interest rates change. Convexity, on the other hand, is concerned with the correlation between the price of a bond and its yield in connection to the change in interest rates.
A bond's duration is lower when its coupon rate is higher and vice versa because of the influence of a coupon payment being high when made early.
Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noneooperative equilibrium, dominant strategy, and Nash equilibrium, and price leadership. To do this, identify the definition for each term from the following list.
1 Actions taken by a firm to achieve a goal, such as maximizing profits.
2 The study of how people make decisions where attaining goals depends on interactions with others.
3 A table that shows the payoffs each firm earns from every combination of firm strategies.
4 An agreement among firms to charge the same price or otherwise not to compete.
5 A strategy that is the best for a firm, no matter what strategies other firms use.
6. A situation in which each firm chooses the best strategy given the strategies chosen by other firms.
7. A game outcome in which players seek to increase their mutual payoff.
8. A game outcome in which players pursue their own self-interest.
9. A situation in which no player can make himself better off by changing his decision at any decision node.
10. A situation where one firm announces a price change, which is matched by other firms in the industry.
a. Game theory:______
b. Cooperative equilibrium:_______
c. Noncooperative equilibrium:_______
d. Dominant strategy:______
e. Nash equilibrium:______
f. Price leadership:_________
Answer:
Explanation:
Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noncooperative equilibrium, dominant strategy, and Nash equilibrium, and price leadership.
To do this, identify the definition for each term from the following list.
1 Actions taken by a firm to achieve a goal, such as maximizing profits.
2 The study of how people make decisions where attaining goals depends on interactions with others. Game theory
3 A table that shows the payoffs each firm earns from every combination of firm strategies.
4 An agreement among firms to charge the same price or otherwise not to compete.
5 A strategy that is the best for a firm, no matter what strategies other firms use. Doninant strategy
6. A situation in which each firm chooses the best strategy, given the strategies chosen by other firms. Nash equilibrum
7. A game outcome in which players seek to increase their mutual payoff. Cooperative equilibrum
8. A game outcome in which players pursue their own self-interest. Non cooperative equilibrum
9. A situation in which no player can make himself better off by changing his decision at any decision node.
10. A situation where one firm announces a price change, which is matched by other firms in the industry. Price leadership
Tyler is completing a balance sheet for his home improvement company. He must include the amounts he owes to suppliers for lumber, tools, equipment, and other materials that he purchased with credit. These liabilities are called_________.A. accrued expenses.B. accounts receivable.C. inventory.D. accounts payable.E. current liabilities.
Answer:
Accounts payable
Explanation:
Accounts payable can be defined as debts that are incurred when goods are bought on credit. Account payable is a type of debt which needs to be paid back to the creditor within a short period of time.
Account payable can also be described as the amount of money owed by an individual or an organization to a supplier of goods and services.
Tyler has incurred a debt because he has bought lumber, tools, equipment, and other materials for his home improvement company.
Is it really necessary for service firms to engage in research and development? In planning for production and operations control?
Answer:
Yes it is very necessary to avoid plunging into a mess of bankruptcy. Every business needs to be planned before venturing into, and if a clear process is not observed then there is a huge danger by the corner.
A software company in China has decided to become a multinational enterprise (MNE). The company desires to completely own its subsidiary and requires a fast entry mode. In addition, the company wants to enter into business immediately without requiring to add a new capacity. In this scenario, which modes of entry will be most appropriate for the company?
Answer:
Acquisition
Explanation:
Acquisition mode of entry is a type of foreign market entry mode that offers fast, large and international expansion into a new market. This is done by a firm gaining control of another firm through the purchase of stocks or exchange of stocks. This type of strategy is usually used by multinational companies to acquire greater market power. A disadvantage of this type of entry is the high cost and integration is difficult due to different organization cultures and relationships..
The most appropriate entry modes for the Chinese software company looking to become an MNE and require fast, full ownership entry are through acquisitions or establishing a wholly-owned subsidiary, with the acquisition being the fastest option.
For a software company in China aiming to become a multinational enterprise (MNE) with complete ownership of its subsidiary and a requirement for fast entry, the most appropriate modes of entry are acquisitions or establishing a wholly-owned subsidiary. Considering the need for immediate business operation without adding new capacity, acquisitions offer the fastest entry mode, enabling the company to capitalize on established operations and market presence. This approach aligns with companies that seek a first-mover advantage, where being early in the market may lead to a sustainable competitive advantage. However, it is critical to be cautious, as the perception of a first-mover advantage has led some companies to over-commit resources without achieving the expected returns, particularly in large emerging markets like China.
Corporate governance structure a.varies a great deal across countries. b.has become homogenized following the integration of capital markets. c.has become homogenized due to cross-listing of shares of many public corporations. d.none of the options
Answer:
a.varies a great deal across countries.
Explanation:
Corporate governance is a mixture of the rules and laws by which the business operates and is regulated and controlled this term involves the external and the external factors that impact the compactors stakeholders, customers, shareholders, and the management. However the structure differs form nations to nations on the basis for the roles played by the governments and that includes the monitoring the actions, policies, and the decisions of the corporations. Countries like the U.K, Canada, Ireland, United States, and New Zealand are the top five countries in the corporate governance scale with an overall rating of 7.6 to 6.7.The items discussed in a(n) _____ include reflections on whether project goals were met, whether the project was successful or not, causes of variances on the project, reasoning behind corrective actions chosen, use of different project management tools and techniques, and personal words of wisdom based on team members experiences.a) design documentb) lessons learned reportc) final project reportd) audit report
Final answer:
The description provided refers to a lessons learned report which is used to evaluate a project after its completion, discussing its successes, challenges, and insights for future improvement.
Explanation:
The items you've described should be included in a lessons learned report. A lessons learned report provides an overview after project completion, addressing whether project goals were met, the success of the project, causes of variances, corrective actions taken, the effectiveness of project management tools and techniques, and personal insights based on team members' experiences. The purpose of this document is to reflect on the process and outcomes of the project to improve future project management practices.
The items discussed in a(n) b) lessons learned report include reflections on whether project goals were met, whether the project was successful or not, causes of variances on the project, reasoning behind corrective actions chosen, use of different project management tools and techniques, and personal words of wisdom based on team members experiences.
Assume the clerk had stolen $1,800 cash, and recorded an entry for a nonexistent NSF check to reduce the cash balance so that it would match the bank balance. Select the internal control practice that would have most likely prevented this fraud. Separation of duties. Maintaining a bank signature card. Hiring competent employees. Performance evaluations. Required vacation.
Answer:
Option A. Sepratation of duties is the correct answer.
Explanation:
The reason is that the clerk is the person who is responsible for preparing both the bank reconciliation, entry postings and handling of cash. This their is no check and balance on the clerk, which constituted to fraud motivation. So having segregation of duties, which means one person is solely responsible for posting of entries in the ledger, other handling of cash and the third one preparing the bank reconciliation would prevent the fraud in the future.
Final answer:
To prevent the theft of $1,800 cash by a clerk through fraudulent accounting, the practice of separation of duties is the most effective internal control measure as it segregates different functions among various employees, thus reducing the risk of fraud.
Explanation:
If a clerk has stolen $1,800 cash and recorded a fake entry for an NSF check to match the bank balance, the internal control practice that would likely have prevented this fraud is separation of duties. This internal control principle divides responsibilities among different employees to reduce the risk of error or inappropriate actions. In this scenario, different individuals would be responsible for handling cash, recording transactions, and reconciling bank statements, making it more difficult for a single person to commit fraud. In contrast, while maintaining a bank signature card, hiring competent employees, conducting performance evaluations, and requiring vacations are important, they may not be as effective in this particular situation as proper separation of duties.
To deal with suspicion of theft, the accused employee can request an investigation that includes a review of the transaction recordings, surveillance footage, and potential witness statements. Implementing additional security measures such as security cameras, and conducting random checks or audits, are practices similar to those used to prevent customers from stealing or governments from tax evasion. These measures would help ensure full compliance and discourage fraudulent behavior.