Which of the following factors supports the decision by large companies to move their
advertising work in-house?
A) Greater objectivity is needed in the advertising process and in-house team can be swayed
by internal organizational factors.
B) The advertised product is complex in operation and function and it is expensive to train
external agency members.
C) Greater creative skills are required to advertise the product and in-house team is drawn
from several departments involved in product development.
D) Huge amounts are being spent on media, such as television, radio, and print ads.
B
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Which of the following people may not manage the operations of a firm in which they are part or full owners?
A) stockholders in S corporations B) stockholders in C corporations C) limited partners in a limited partnership D) general partners in a limited partnership
Auditing standards define ________ as the magnitude of misstatements that individually, or when aggregated with other misstatements, could reasonably be expected to influence the economic decisions of users made on the basis of the financial
statements. A) fraud B) inherent risk C) materiality D) significant