Which of the items below would not be considered a possible common exposure for a corporation?
A) Excessive prices are paid for goods for use in the organization.
B) The corporation never was billed for a sale of merchandise shipped to a customer.
C) A flash flood destroys the merchandise contained in a warehouse.
D) Certain equipment was accidentally misplaced and not depreciated.

Question

Quizplus · Accepted Answer

A flash flood destroying merchandise in a warehouse would not be considered a common exposure for a corporation as it is an unexpected and uncontrollable event. The other options (excessive prices paid for goods, unbilled merchandise, and misplaced equipment) are all examples of common exposures that a corporation may face.

Which of the Items Below Would Not Be Considered a Possible