When Organizations Adopt Security Measures for a Legal Defense, They

question 9

Multiple Choice

When organizations adopt security measures for a legal defense, they may need to show that they have done what any prudent organization would do in similar circumstances. This is referred to as __________.

• A) baselining
• B) best practices 
• C) benchmarking
• D) standards of due care

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Definitions:

Pro Rata

A term used to describe a proportionate allocation or distribution of something, like costs or income, among participants based on a specific formula.

Discharged

A term used in legal and financial contexts referring to the release or extinguishment of an obligation or debt.

Gap Creditor

A creditor who holds a claim against a debtor that is not secured by collateral and does not qualify for priority status in bankruptcy proceedings.

Back Taxes

Taxes that have been unpaid in the year they were due, often subject to penalties and interest.