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Exam Code: GLO_CWM_LVL_1

Exam Name: Chartered Wealth Manager (CWM) Global Examination

Certification Provider: AAFM

Related Certification: Chartered Wealth Manager (CWM) Global Examination

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NEW QUESTION: 1
The nature of accountability means the governing body (agent) must make an accounting back to the public and/or service recipient (principal) regarding the achievement of objectives and the stewardship of resources. All of the following are certain elements of risk that exist in the principal-agent relationship EXCEPT:
A. Moral hazards - potential for the agent to develop a conflict of interest between the agent's own interests and those of the principal.
B. Consequence of error - the cost/impact to the principal is greater than that to the agent if errors occur undetected.
C. physical hazards
D. Complexity - the possibility that operations to achieve establishedobjectives are too complex forthe principal to readily understand.
Answer: C


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