Answer:
Other customers of the firm who place buy orders, if the firm has information barriers in place.
Explanation:
FINRA has strict rules against front running, and this is the process by which interested parties place orders for shares beforehand because they have insider information on how a share is going to perform in the future.
This rule is binding on any registered representative.
However if the firm has information barriers in place, any other customers that places a buy order will be assumed not to have insider knowledge of the share's expected performance. The FINRA rule is not binding on them.
Answer:
1. Several individuals operate the cash register using the same register drawer. Weak Internal Control. <u>Establishment of Responsibility Internal control violated. </u>
Having many individuals have access to the cash register can lead to theft. Establishment of Responsibility is an internal control that calls for the minimal amount of people being able to do one task. This way issues can be traced faster.
2 .A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. Good Internal Control. <u>Independent Internal Verification control followed. </u>
Independent Verification occurs when a person who is an employee of a company but not related to a task, audits that task to find out if any irregularities are present. It ensures unbiased review.
3. Joe Cockrell writes checks and also records cash payment journal entries. Weak Internal Control. <u>Segregation of Duties Internal control violated. </u>
Segregation of duty calls for the division of a job process into tasks that different people are to accomplish especially in relation to cash. It can help avoid fraud because people will not be able to approve payments for themselves which is what Joe Cockrell can do in this scenario. Joe can withdraw and decide not to record it.
4 .One individual orders inventory, while a different individual authorizes payments. Good Internal Control. <u>Segregation of Duties Internal control followed. </u>
Segregation of duty calls for the division of a job process into tasks that different people are to accomplish especially in relation to cash. By having one individual order inventory and the other authorizing payments, fraud can be better avoided.
5 .Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording. Weak Internal Control. <u>Documentation Procedures Internal control violated. </u>
Documentation procedures in a company ensure that the paper trail is efficiently recorded so that transactions can be followed up speedily. By sending unnumbered sales invoices to the Accounting department as well as taking so long to do so, the company is running an inefficient documentation process that will make tracking transactions more difficult.
Answer:
True
Explanation:
Political instability is a risk to a business. For a business to thrive, the economy should be free from political unrest or turbulence. Countries that experience political turmoils are characterized by civil unrest, violence and rooting, and industrial actions that result in low economic growth.
Political stability gives confidence to investors that their investments are protected by the government and will grow. The economy of a politically stable country can be predicted many years into the future. Many investments need a long time to break even and make returns. Political unrest cause massive destruction of properties and business. Investors in stable countries are assured of their safety and the safety of their investments.
A: A horizontal integration consists of companies that acquire a similar company in the same industry, while a vertical integrationconsists of companies that acquire a company that operates either before or after the acquiring company in the production process.
The total account Dept as of the statement date is known as the balance.
