Jared Is a Loan Officer at a Bank Whose Responsibilities

question 29

Multiple Choice

Jared is a loan officer at a bank whose responsibilities include taking applications from prospective borrowers.Jared also makes an initial recommendation regarding each loan, although final approval requires the authorization of both a branch manager and a loan specialist at the bank's corporate headquarters.Within the context of a loan transaction, which of the following best pairs a risk with an internal control that will address the risk?

• A)Approving a loan for a friend who does not meet the criteria, limit checks
• B)Including false or misleading information on the loan application, preformatted data entry screen
• C)Submitting an incomplete loan application, preformatted data entry screen
• D)Submitting an incomplete loan application, limit checks

Recognize and apply proper sentence construction to avoid grammatical errors.

Understand the use of passive and active voice in business writing and their impact on message clarity.

Understand the significance of parallel construction in enhancing readability.

Understand how to de-emphasize negative information in business communication.

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Definitions:

Activity Rates

The charges or costs applied to specific activities or cost drivers in activity-based costing.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their activity levels.

Overhead Cost

Expenses that are not directly attributed to creating a product or service but are necessary for running the business, such as rent, utilities, and office supplies.

Products

Items or goods that are manufactured or refined for sale.