Unformatted text preview: usually deeply involved in the business, and rely on that involvement to prevent fraud. Small companies often times rely on employees, friends, family members, and other “trusted” individuals because they are not large enough (do not have enough resources/employees) to provide the adequate division of responsibilities or install a system of checks and balances. Since these small companies rely heavily on personal trust and relationships, they are more vulnerable to fraud. This can make the size of theft losses that are discovered highly disproportionate to the size of the company. Small companies can ensure the integrity of their employees by performing background checks before hiring them on. They can also encourage integrity and honesty by their own conduct....
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This note was uploaded on 04/30/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Phoenix.
- Spring '11