Page 407 - Business Principles and Management

Unit 5

look for attempts to “hack” or illegally access information from the computer
systems. Companies should also store backup copies of electronic records in a
secure off-site location. Service companies rent storage space on their comput-
ers or in their climate-controlled data warehouses for safe record archiving and
protection.

CHECKPOINT
Describe five types of records a business should maintain.

15.1 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. Which of the following is not a reason businesses need to maintain
financial records?
a. to determine the kinds and values of assets
b. to track the financial progress of the business
c. to prepare financial forms and reports required by the
government
d. to provide financial information to competitors
2. Expensive assets of a business that are expected to last and be used
for a long time are known as
a. fixed assets
b. depreciated assets
c. obsolete assets
d. stable assets

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Even if a business owner hires people to maintain financial records,
why should he or she understand the procedures they use?
4. Describe several examples of ways that the financial records of a
company can be harmed or damaged. For each example, how is the
business harmed? How are others harmed? How
can the company prevent the harm or damage?

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