Dale Is an Employee of Big State University Who Also

question 51

Multiple Choice

Dale is an employee of Big State University who also does some independent consulting to supplement income.Because consulting engagements are infrequent, Dale has not purchased insurance for the company.If Dale requires consulting clients to pay in cash, which of the following risk exposures is most serious?

• A)Directors' and officers' liability risk
• B)Systems risk
• C)Credit risk
• D)Consulting risk

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Definitions:

Encoding Failure

The inability to create a memory link because the information was not attended to or analyzed deeply enough.

Proactive Interference

The tendency for earlier learned material to interfere with the retention of new information.

Decay

The process of decline or deterioration over time, used in various contexts such as physical, biological, or psychological.

Retrieval Failure

Not remembering something one is certain of knowing.