Bonding Involves All of the Following except

question 135

Multiple Choice

Bonding involves all of the following except

• A)The company obtains insurance protection against misappropriation of assets by a dishonest employee.
• B)The insurance company screens employees before they are added to the policy.
• C)The company informs employees that the insurance company will vigorously prosecute all offenders.
• D)Employees do not commit inappropriate acts because of the threat of prosecution and their loyalty to the employer.

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Definitions:

Investment Dealer

A business entity or individual that engages in the buying and selling of securities for its clients or its own account.

Securities Commission

A regulatory body charged with overseeing the securities markets to protect investors and maintain fair, efficient, and transparent systems.

Insider Trading

The illegal practice of trading a public company's stock or other securities based on material, non-public information about the company.

Prospects

Potential customers or clients, or the likelihood of future success in a particular area.