Misappropriation of Company Assets Can Occur When Employees Set Up

question 48

True/False

Misappropriation of company assets can occur when employees set up accounts for fictitious vendors and process payments to those vendors.

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Definitions:

Primarily Liable

Refers to the party who bears the initial responsibility for fulfilling an obligation or debt.

Sublease

A legal agreement where a tenant rents out a property they are leasing to another party.

Entire Interest

A phrase indicating the total ownership or complete control of property or an asset.

Freehold Estate

An interest in land or real property that is of uncertain duration, including estates like fee simple and life estates, which can be inherited.