Which of the Following Statements Is Correct with Respect to Bonding

question 49

Multiple Choice

Which of the following statements is correct with respect to bonding?

• A) Bonding is another term for insurance. The two terms, bonding and insurance, are interchangeable.
• B) If a person is bonded and that person commits some wrongful act such as stealing a client's money, the bonding company is bound to compensate him for any losses he suffers from being caught.
• C) Bonding provides protection to the victim injured by the wrongful conduct of the person bonded.
• D) Bonding provides protection against losses incurred because of fluctuations in the financial markets.
• E) Bonding is a government certification system whereby the government guarantees that a person so bonded or certified will do the job he is hired to do as set out in the bonding certificate.

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Definitions:

Collecting Accurate Information

The systematic approach to gather precise and correct data or facts from various sources, essential for informed decision-making processes.

Deviant Lying

The act of telling falsehoods that deviate significantly from societal norms or expectations, often with harmful intentions.

Most Harmful

Describes the action, substance, or event that is likely to cause the greatest damage or negative impact.

Violates The Law

refers to actions or behaviors that go against legal statutes, ordinances, or regulations, resulting in illegal conduct.