A Mechanism by Which a Company Is Reimbursed for Any

question 66

Multiple Choice

A mechanism by which a company is reimbursed for any loss that occurs when an employee commits fraud is called a:

• A) segregation of duties
• B) fidelity bond
• C) personnel planning control
• D) termination control plan

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Definitions:

Perfect Tender Rule

A legal principle in commercial law that sellers must deliver goods that exactly meet the terms of the contract without any deviation.

Material Breach

A substantial breach of a significant term or terms of a contract that excuses the nonbreaching party from further performance under the contract and gives the nonbreaching party the right to recover damages.

Partially Destroyed

Refers to property or goods that have been damaged but not completely ruined, retaining some value or use.

Contract Price

The price agreed upon by the contracting parties as the amount to be paid for the fulfillment of the contract obligations.