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NEW QUESTION 22
In which type of business environment are price cutting strategies and franchising strategies most appropriate?

  • A. Competitive, embryonic.
  • B. Mature, fragmented.
  • C. Fragmented, decline.
  • D. Embryonic, focused.

Answer: B

NEW QUESTION 23
When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?

  • A. The boundaries established to manage the amount of risk taken.
  • B. The amount of risk that an organization is willing to seek or accept.
  • C. The exposure to risks following management's risk responses.
  • D. The extent and degree of interdependency for identified key risks.

Answer: C

NEW QUESTION 24
Under a value-added taxing system:

  • A. The amount of value added is the difference between an organization's sales and its cost of goods sold.
  • B. Businesses must pay a tax only if they make a profit.
  • C. The consumer ultimately bears the cost of the tax through higher prices.
  • D. Consumer savings are discouraged.

Answer: C

NEW QUESTION 25
Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management's duties with regard to this model?

  • A. Identify emerging issues.
  • B. Set goals for implementation.
  • C. Identify management functions.
  • D. Ensure compliance with the model.

Answer: D

NEW QUESTION 26
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