Multiple Choice
Which of the following is an advantage Doug should expect by sharing ownership with others in a business organization?
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1. Introduction to Accounting
Business Organization
Struggling with Financial Accounting?
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Which of the following is considered the domain of a company's managers?
A
Regulating the stock market
B
Auditing the company's financial statements
C
Internal decision-making and operations
D
Setting accounting standards for all companies
Verified step by step guidance1
Understand the concept of 'domain of a company's managers': Managers are responsible for overseeing the internal operations and decision-making processes within the company. Their role is focused on ensuring the company runs efficiently and achieves its strategic goals.
Eliminate options that are external to the company's internal operations: For example, regulating the stock market and setting accounting standards are tasks performed by external entities like government agencies or standard-setting bodies, not the company's managers.
Consider the role of auditors: Auditing the company's financial statements is typically performed by external or internal auditors, not the managers themselves. Managers may provide information to auditors but are not directly responsible for auditing.
Focus on the correct answer: Internal decision-making and operations are directly within the domain of a company's managers. This includes planning, organizing, directing, and controlling the company's resources to achieve its objectives.
Conclude that the correct answer is 'Internal decision-making and operations,' as it aligns with the responsibilities and domain of a company's managers.
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