A Disadvantage to Further Strengthening the Framework of Rules Against

question 23

Multiple Choice

A disadvantage to further strengthening the framework of rules against fraud is that

• A) Unscrupulous directors may continue to find ways to commit fraud
• B) The entrepreneurial spirit of talented directors could be stifled
• C) Shareholders will become overprotective and passive
• D) Enforcement officials are more likely to become corrupt
• E) Information to shareholders will become greatly restricted

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Definitions:

Insured

An individual or entity covered by an insurance policy, receiving financial protection or reimbursement against losses from an insurer.

Loss

The state or condition of not having something anymore, often referring to the disadvantage suffered following a particular event or action.

Breach of Warranty

Failure to meet the terms of a promise or guarantee made about the quality or durability of a product or service.

Auto Insurance

A type of insurance policy that covers vehicles and their drivers against potential financial losses related to accidents, theft, or damage.