International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Internal Control and Financial Performance of Small Restaurants

Author(s) Mr. Orlando Libed Ananey
Country Philippines
Abstract Businesses are always accompanied by business risks. Restaurants are not an exemption. The implementation of internal control is an option to mitigate risks and provide reasonable assurance of achieving the objectives of a business. Internal control is for any size of an organization but its implementation is affected by factors such as size of the entity and financial capability. The main purpose of this study is to evaluate the internal control and financial performance of small restaurants located in La Trinidad, Benguet. At the same time, it aims to determine the relationship between the quality of internal control employed by small restaurants and their financial performance. Descriptive survey method was used in the study. The study concludes that small restaurants in La Trinidad, Benguet employed high quality internal control and their financial performance in terms of gross profit margin and net profit margin are average. Pearson’s correlation coefficient revealed that there is a high positive correlation between internal control quality and financial performance in terms of gross profit margin and net profit margin of small restaurants in La Trinidad, Benguet.
Keywords Internal Control, Small Restaurants, Gross Profit Margin, Net Profit Margin
Field Business Administration
Published In Volume 7, Issue 2, March-April 2025
Published On 2025-04-09
DOI https://doi.org/10.36948/ijfmr.2025.v07i02.40943
Short DOI https://doi.org/g9fb9v
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E-ISSN 2582-2160
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