Question

Which event would you consider the most impactful?

a. An impending recession

b. Theft of petty cash

c. Loss of backup files

d. Board of Directors are indicted for fraud

Answer 1

Answer: d

The fraud done by Board of Directors is severely impactful.

All the others could be managed, rectified, or eliminated as the time goes on; but if the Board of Directors is involved in corruption, the future of the company would be in dark. This is so because the Board of Directors are the topmost authority of a company; they are the hands and brains of company’s course of activities. Therefore, they need to be fair enough.

Other options are not correct:

Option a: recession is a phased of a business cycle which will be over in near future. Therefore, this is not so impactful.

Option b: The person who theft may be rusticates by the board of directors and making the thing in order. Therefore, this is not so impactful.

Option c: backup files could be created again and it is a technical issue; therefore, not so serious matter.