One of the Duties Generally Imposed on the Principal by the Common

question 31

Multiple Choice

One of the duties generally imposed on the principal by the common law is:

• A)the duty to share profits and losses.
• B)the duty to reimburse and indemnify.
• C)the duty to account for funds and property.
• D)the duty to consult.

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Definitions:

Internal Controls

Procedures and mechanisms implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Fraud

Intentional deception made for personal gain or to damage another individual.

Sarbanes-Oxley

A U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures, made in response to financial scandals.

Public Confidence

The level of trust and belief that the general public has in the stability and integrity of a financial market, institution, or economy.