Final answer:
Control activities such as internal audits, training programs, insurance coverage, and performance appraisals are vital for effective management and ensure the achievement of a company's objectives.
Step-by-step explanation:
The question pertains to identifying the correct control activities that a company should maintain, each aligned with the provided definitions. Control activities are integral to effective management and functioning in any business organization. They serve as mechanisms for managing risks and ensuring that the objectives of a company are achieved. Let's align the activities with their corresponding definitions:
- Internal audits: An internal audit is a key control activity involving a comprehensive and objective examination of the company's operations, primarily to assess the effectiveness of its internal control systems. Through audits, companies can identify deficiencies and improve their processes.
- Employee training programs: Training programs are essential for ensuring that employees have the necessary skills and knowledge to perform their jobs effectively. A 2003 study by Arthur, Bennett, Edens, and Bell confirmed the effectiveness of organizational training through various measures, including employee reactions, learning outcomes, behavioral changes, and business results such as productivity and profits.
- Adequate insurance coverage: Insurance is a risk management tool that provides financial protection against potential losses. Adequate insurance coverage ensures that a company can withstand unforeseen events that may cause significant financial harm.
- Regular performance appraisals: Performance appraisals are critical for assessing an employee's job performance and productivity. They serve as a basis for making decisions about promotions, compensation adjustments, and identifying areas for improvement.