Which of the following borrowing options is an unsecured loan?

• A.Asset-based financing.
• B.Second-mortgage financing from a bank.
• C.An issue of commercial paper.
• D.Pledged accounts receivable.

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A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?

• A.Recommend criteria to be used in the selection process.
• B.Evaluate the proposed external auditor fee.
• C.Monitor the work of the external auditors.
• D.Develop appropriate performance metrics.

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The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
1) Financial measures
2) Internal business process measures.
3) Client satisfaction measures
4) Innovation and learning measures

• A.3 and 4 only.
• B.1 only.
• C.2 and 4 only.
• D.2, 3, and 4 only

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An organization is considering the outsourcing of its business processes related to payroll and information technology functions. Which of the following is the most significant area of concern for management regarding this proposed agreement?

• A.Ensuring that the vendor has complete management control of the outsourced process.
• B.Ensuring that there are means of monitoring the efficiency of the outsourced process.
• C.Ensuring that there are means of monitoring the effectiveness of the outsourced process.
• D.Ensuring that payments to the vendor are appropriate and timely for the services delivered.

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An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?

• A.There is a significant amount of collaboration between headquarters and subsidiaries.
• B.Orders, commands and advice are sent to the subsidiaries from headquarters.
• C.Standards used for evaluation and control are determined at local subsidiaries, not set by headquarters.
• D.People of local nationality are developed for the best positions within their own country

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