Which of the Following Statements Is Correct with Respect to Bonding

question 118

Multiple Choice

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

• A) Bonding is another term for insurance. The two terms, bonding and insurance, are interchangeable.
• B) 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.
• C) Bonding provides protection against losses incurred because of fluctuations in the financial markets.
• D) 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.
• E) Bonding provides protection to the victim injured by the wrongful conduct of the person bonded.
• TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

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Definitions:

Suitable Full-Time Work

Employment that aligns with an individual’s skills, availability, and offers adequate compensation and working conditions.

Employers

Organizations or individuals who hire and pay employees to perform specific tasks or services.

Training and Benefits

Programs and incentives provided by employers to enhance the skills of their workforce and improve their welfare, respectively.

Paying Bills

The process of settling financial obligations for services rendered, such as utilities, mortgage, or credit cards.