The financial management of a company should take steps to see that company's investment securities are protected. Which of the following is not a step that is designed to protect investment securities?
A) Securities should be registered in the name of the owner.
B) Access to securities should be vested in more than one person.
C) Custody of securities should be assigned to persons who have the accounting responsibility for securities.
D) Securities should be properly controlled physically in order to prevent unauthorized usage.
Answer: C) Custody of securities should be assigned to persons who have the accounting responsibility for securities.
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Why did the U.S. price of imports of compact trucks (like the Toyota Tacoma) not increase by 25% when the U.S. Customs Service reclassified them as "complete or unfinished trucks" with a tariff of 25%?
a. U.S. truck dealers that retailed imported compact trucks lowered their retail prices and absorbed part of the tariff. b. U.S. consumers negotiated lower retail prices from U.S. truck dealers selling imported compact trucks. c. The U.S. government decided not to collect the 25% tariff on imported Japanese compact trucks and instead made them subject to voluntary export restraints. d. Japanese truck manufacturers lowered their prices on trucks sold in the U.S. market and absorbed part of the tariff.
What are some of the demerits of decentralization?
What will be an ideal response?