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Noel is considering introducing a number of control systems into his business. However, h is uncertain about what this would accomplish.
Which of the following is NOT a purpose of organisational control systems?
(A) Safeguarding of company assets
(B) Prevention of errors
(C) Increased profitability
(D) Increased efficiency
Sir please explain how ‘C’.
Curious question, and not very good, I think. Most definitions of internal control talk about safeguarding assets and allowing the business to be run well and efficiently. These would all help to increase profits/minimise losses.
I think C has been chosen because it is a consequence of the other options, but not the immediate aim of internal control.
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