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WorksheetsBusiness Organization and Structure
Total questions: 55
Worksheet time: 2hrs 27mins
What kind of business is BEST described by these statements?
I am the only owner of my business.
I take all the risks of doing business.
I keep all the profits.
Partnership
Cooperative
Corporation
Sole proprietorship
An entrepreneur is who
enforces government regulations
takes the risk to earn profit
sets the interest rates at banks
manages financial investments
A form of business organization that is authorized to act as a legal entity regardless of the number of owners.
Company
Partnership
Sole proprietorship
Distributor
What is a disadvantage of a partnership?
Ease of formation
Limited liability
Owners share responsibilities
Possibility of personality conflict
Nike, Fashion Valet, and Google are examples of
Partnership
Sole proprietorship
Company
Self business
One of the advantages of a sole trader business is that
owners have limited liability
decisions and responsibilities can be shared
shares can be sold to raise capital
the owner has complete control over decision making
The owners of a corporation are called
Directors
Shareholders
Partners
Founders
The easiest form of business to start and end is a(n)
limited liability partnership
corporation
franchise
proprietorship
What is the advantage of corporations?
has one owner
limited liability
minimal government regulation
short life span
Which of the following is the definition for Partnership?
business investment that involves renting or leasing another successful business model
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
Which of the following is an advantage of a Franchise?
a nationwide network that had a respected product, a deep product line, excellent quality standards, nationwide advertising, and professional advice whenever needed.
the ease of raising financial capital through stocks, bonds, and loans.
the ease of management between two or more partners.
_____ defines how job tasks are formally divided, grouped, and coordinated.
Organizational structure
work speacialization
Departmentalization
Organizational behavior
Work specialization is the same as _____.
a. departmentalization
b. division of labor
c. decentralization
d. job grouping
The basis by which jobs are grouped together is termed _____.
bureaucracy
specialization
centralization
departmentalization
The _____ refers to the number of subordinates that a manager directs.
A. span of control
B. unity of command
C. chain of command
D. decentralization principle
What is the characteristics of managerial accounting information?
Accuracy
Timeliness
Relevance
All of above
What is the roles of management accountant?
Provide information and accounting reports
Responsible for carrying out the task of helping the management
Assist departments in achieving the organization objectives.
All of above
Which of the following describe the operational audit?
A. In attempts and is designed to verify the fair presentation of a company’s results of operations.
B. It concentrates on seeking out aspects of operations in which waste would be reduced by the introduction of controls.
C. It requires the constant review by internal auditors of the administrative controls as they relate to operations of the company.
D. It concentrates on implementing financial and accounting control in a newly organized company.
Which of the following statements is not a distinction between external auditors and internal auditors?
A. Independent auditors represent third party users external to the auditee entity, whereas internal auditors report directly to management.
B. Internal auditors are employees of the auditee, whereas independent auditors are independent contractors
C. Although independent auditors strive for both validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.
D. The internal auditor’s span of coverage goes beyond financial auditing to encompass operational and performance auditing
Which of the following statements does not describe a condition that creates a demand for auditing?
A. Expertise is often required for information preparation and verification.
B. Conflict between an information preparer and a user can result in biased information.
C. Information can have substantial economic consequences for a decision-maker.
D. Users can directly assess the quality of information.
What are the nature and scope of audit work?
Reasonable precautions to safeguard collection and custody of public money.
Payments made with proper authority supported by sufficient vouchers.
Due care has been taken into account for proper use, control, maintenance and disposal of all public stores.
All of the above.
Select the evidence of auditing the revenue and expenditure
May be in debts or equity securities
Payments received for goods and services
Liquid notes and coins
Bank statements
Choose audit objective
Validity
Accuracy
Completeness
Properly recorded
Traditionally, confirmations are used to verify:
bank balances and accounts receivables.
fixed asset additions
individual transactions between organizations, such as sales transactions.
all three of the above
Auditor unique role is for the following expertise except for
A. Determining proper audit procedure
B. Provide relevant information on economic event
C. Deciding the number and types of items to test evidence
D. Evaluating audit results
Which of the following describe the true relationship between auditor, client and external users?
A. Management provides capital to external users and auditor is hired to provide report relied upon by users for assurance.
B. External users rely on auditor’s report assurance to reduce information risk provided by management
C. Auditor ensure report are based on management decision on the economic event to be presented to external users
D. Management and auditor provide financial statement to external users
The distinction between the role of auditor and accountant can be best describe as
A. Accountant provide financial information for decision making while auditor determine whether the information properly reflects the economic events of the accounting period.
B. Accountant must have a thorough understanding of the principles and rules to prepare financial statement while auditor rely on the theory of evidence to verify the financial statement.
C. Auditor is responsible for detection and prevention of error and frauds while accountant ensure the credibility and quality dimension of financial statement.
D. Auditor must possess expertise in the accumulation and interpretation of audit evidence while accountant need to be expert in understanding the principles and rules.
Teng Looi wants to protect her assignment that she keeps in her computer folder.
Install firewall
Using data backup
Install Antivirus
Using cryptography
Which of the following are ways to make a system more secure?
Add different access levels for different users
Lock the door
Disconnect from the Internet
Use a firewall
Pray at the altar of Lord Securitron the Omniscient
What is the best way to protect intercepted transmissions being read by a third party?
Encryption
Digital Signatures
Hiding the message
Only sending a single word at a time
Access control system, CCTV and security guards are form of:
A. Access control
B. Environment security
C. Physical security
D. Compliance
What controls can you do to protect sensitive data in your computer when you go out for lunch ?
A. You activate you favorite screen - saver
B. you turn off the monitor
C. You lock your computer by pressing Windows+L or CTRL-ALT-DELETE and then Click " Lock Computer"
D. You are confident to leave your computer screen on since a password protected screensaver is installed and it is set to activate after 10 minutes of inactivity.
It ensures that the system protects the information from an authorised users. This meaning refer to goal of security of
Non-repudation
Availability
Integrity
Confidentiality
What is the most important goal of fraud prevention and detection in the Financial Services industry?
Increase security and trust
Reduce liability
Create more efficient fraud detection practices
Ensure compliance with data privacy regulations
What are some of the techniques used for fraudulent activity detection in the Financial Services industry?
Regular review of accounts and transactions.
Verifying customer identification.
Evaluating customer behaviors.
Ensuring secure payment protocols
What strategies are used by the Financial Services industry to reduce fraudulent activities?
Educating customers about fraud prevention.
Creating an alert system.
Enforcing rules and regulations.
Identifying suspicious transactions immediately
What best describes the role of secure authentication protocols in the Financial Services industry?
Provide digital signing and verification process.
Reduce the occurrence of fraudulent activities.
Ensure compliance with data privacy regulations.
Monitoring online financial transactions for fraud detection
