Indicate Whether Each of the Following Statements Regarding Internal Controls

question 56

True/False

Indicate whether each of the following statements regarding internal controls is true or false.
-A fidelity bond is a form of insurance that companies buy to protect themselves from loss due to employee dishonesty

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Definitions:

Tiebout Hypothesis

A theory suggesting that people will migrate to local jurisdictions that best satisfy their preferences for public goods and services, reflecting a form of market efficiency in local government.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by many people simultaneously without depletion.

Free-rider Problem

A situation in which some individuals consume more than their fair share of a public resource, or shoulder less of the cost of its production, benefiting from goods or services without paying for them.

Nonexcludable Problem

An issue characteristic of public goods, where it is not possible to prevent individuals who do not pay from consuming a good or service.