Which of the Following Is a Distinguishing Characteristic of Comprehensive

question 31

Multiple Choice

Which of the following is a distinguishing characteristic of comprehensive general liability insurance?

• A) It compensates for liability for damage to the property of third parties.
• B) It compensates for liability for personal injuries suffered by a third party.
• C) It compensates for a third party's property damage and personal injuries.
• D) It compensates for losses sustained directly by the insured itself.

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Definitions:

Internal Control Problems

Issues or weaknesses in a business's processes that can lead to inaccurate financial reporting, fraud, or operational inefficiency.

Segregation Of Duties

A fundamental control principle that ensures critical tasks are divided among different individuals to prevent fraud and errors.

Physical Controls

Security measures implemented to safeguard tangible assets, such as locks, surveillance cameras, and secure storage facilities.

Documentation Procedures

The processes used for documenting a company's financial transactions, activities, and controls to ensure accuracy and reliability of financial records.