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NEW QUESTION 29
J is a manager in charge of a section in GDD's Buying department. J has eight staff who report to her.
Including M, who has worked for GDD for seven months.
One afternoon, while J was absent on sick leave, M was asked to place an urgent order for plastic pellets that are vital for GDD's production process. The usual supplier could not supply the pellets on time to avoid a shortage and so M telephoned a new supplier and placed an order. When the supplier invoiced for the delivery, GDD's Accounts Payable Department rejected the invoice because the supplier did not have a valid account.
On investigation, it was revealed that M did not have the authority to place an order with a new supplier. Only J can authorise new accounts. M claimed that he had been unaware of the need to seek approval because he had never found it necessary to place an order with a new supplier before Which TWO of the following statements ate correct?

A. should have made certain that M knew and understood the limits of his responsibilityB. M should be disciplined for exceeding his authorityC. GDD's directors are ultimately responsible for M's errorD. The investigation of this matter was a waste of time because the pellets were urgently requiredE. GDD's Internal Audit Department should have cancelled the order.

Answer: B,D

 

NEW QUESTION 30
James owns a small company which sometimes suffers from credit risk.
Which of the following measures should he put in place to help reduce this risk?

A. Introduce credit checks for new customers.B. Pay suppliers' invoices quicker.C. Reduce the company bank loans.D. Look for a loan with a lower interest rate.

Answer: A

 

NEW QUESTION 31
H sells machinery and also associated services, such as advice and repairs. H's industry is going through considerable transformation.
Classify each of the examples of information available to H's management as strategic, operational or of having little value.

Answer:

Explanation:

 

NEW QUESTION 32
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