Which of the Following Statements Is Correct with Respect to Bonding

question 75

Multiple Choice

Which of the following statements is correct with respect to bonding?

• A)Bonding provides protection against losses incurred because of fluctuations in the financial markets.
• B)Bonding provides protection to the victim injured by the wrongful conduct of the person bonded.
• C)Bonding is a government certification system whereby the government guarantees that a person so bonded or certified will do the job he is hired to do as set out in the bonding certificate.
• D)If a person is bonded and that person commits some wrongful act such as stealing a client's money,the bonding company is bound to compensate him for any losses he suffers from being caught.
• E)Bonding is another term for insurance.The two terms,bonding and insurance,are interchangeable.

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Definitions:

Norming and Forming

Stages in the Tuckman model of team development, where 'forming' involves team initiation and orientation, while 'norming' refers to standardizing procedures and establishing norms.

Preventing Deleterious Changes

Taking actions to stop harmful or damaging modifications from occurring.

McGrath

Refers potentially to Joseph Edward McGrath, a psychologist known for his research on small groups and team dynamics.

Executive Action/Internal

Executive action refers to decisions or measures taken by an organization's leadership, often involving strategic, policy, or managerial changes within an internal framework.