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NEW QUESTION 43
Rio owns an architects business which employs 12 skilled architects and four administrative staff.
The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.
What are the limitations of an internal control system in Rio's business?

A. If Rio does not support the internal control system then the controls may not be adhered to.B. Internal controls are only suitable for large businesses.C. Employees could ignore the internal controls.D. Internal controls may slow down the speed with which the architects can respond to enquiries.E. Internal controls will usually mean hiring more staff.

Answer: A,C,D

 

NEW QUESTION 44
CVB is a major chain of pharmaceutical retailers that is quoted on its home stock exchange.
CVB's Chief Executive Officer (CEO) persuaded a former school friend to join CVB's Board as Non-executive Chair It is not widely known that the two have been lifelong friends. The Chair tends to defer to the CEO on all matters arising at Board meetings Which of the following statements are correct?
Select ALL that apply.

A. CVB's shareholders are likely to be misled over the quality of governanceB. There will be a major corporate scandal relating to CVBC. This friendship does not matter because the CEO and Chair would become friends anywayD. The Chair should have declared an interest and refused this appointmentE. The presence of the other non-executives will ensure sound governance

Answer: A,D

 

NEW QUESTION 45
Which of the following statements are true of economic risk?

A. Economic risk is easy to measureB. Economic risk may be caused by international tradeC. Economic risk is influenced by many factorsD. Economic risk is something which cannot be avoided

Answer: B,C

 

NEW QUESTION 46
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