The following is NOT an example of a potential monitoring solution to moral hazard
A)blocking social network sites on company computers
B)closed circuit TVs throughout a warehouse
C)requiring a kitchen remodeling contractor to be 'bonded'
D)listening in on call center conversations

Question

​The following is NOT an example of a potential monitoring solution to moral hazard
A)​blocking social network sites on company computers
B)closed circuit TVs throughout a warehouse
C)requiring a kitchen remodeling contractor to be 'bonded'
D)​listening in on call center conversations

Quizplus · Accepted Answer

Requiring a kitchen remodeling contractor to be 'bonded' is a risk management tool to mitigate against financial loss due to the contractor's failure to complete the job or meet contractual obligations. It is not directly related to monitoring for moral hazard. The other options (A, B, and D) involve monitoring employee behavior to deter or detect moral hazard.

​The Following Is NOT an Example of a Potential Monitoring

The Following Is NOT an Example of a Potential Monitoring